208-267 Financial Management for Resource Ind II

208-161 Financial Management for Resource Industries I and 208-163 Farm Management.

The student would be able to:

• understand investment analysis/capital budgeting in order to analyse investments;

• understand strategies for coping with risk and uncertainty in decision-making;

• be able to appraise assets for acquisition, leasing options to ownership;

• understand investment principles (both in and out of the principal industry);

• understand the taxation implications of investment and finance decisions;

• understand the issues involved in the transfer of a business;

• understand the strategic management process and its application to farming;

• develop a strategic business plan to improve the productivity and profitability for rural business, giving due consideration to enterprise selection, business risk and changing business environment; and

• complete a comprehensive financial analysis of plan: interpret and critically analyse the project's results, draw rational conclusions and identify key success factors.

The subject covers areas of:

• investment analysis - capital budgets, discounted cash flow techniques, cost benefit;

• development budgets;

• asset valuation;

• land valuation;

• asset acquisition - purchase - rent - lease - syndication;

• stock market investment;

• risk management strategies - futures - insurance - quantitative decision analysis;

• advanced taxation planning and issues; and

• business transfer issues.

Students will undertake a number of case studies to develop strategic management skills before undertaking a project of significant size which exhibits original investigation, analysis and interpretation, and which results in the production of a well-written and presented report.

One 2.5-hour written examination worth 40% of final marks, two assignments equivalent to 3000 words and worth 30% of final marks each.

• Makeham and Malcolm, The Farming Game Now. Cambridge Press, 1993.
• Coulthard, Howell and Clarke, Business Planning - The Keys to Success. MacMillan Education Australia Pty Ltd, South Melbourne, 1996.