Financial Management

This subject has taught all the formulas and how to analyse a company's status. The formulas in this subject are very useful in my future career, it will help me to see clearer picture of current situation. 

For example, the net present value is very useful too, it helped us to see how much this project will generate the profits and take in the time value of money into consideration. The time value of money concept is very interesting concept, it basically saying that the value of the money now may not worth the same in the future due to inflation or deflation.

The formula for Present Value

Where i = required rate of return, n = number of years


Then, we apply this formula

Net Preset Value = Present Value of Future Income - Initial Investment Cost 

If NPV > 0, then we should consider to accept this project. On the other hand, if NPV < 0, then we should not accept this project and start to look for other projects which are profitable.

The group assignment of this project is interesting and challenging, we were asked to choose a listed company in BURSA Malaysia. After we had chose Hap Seng Consolidated Berhad as our case study, we analysed their financial status, objectives, market target and share, forecast their following three years' financial status, and the problems which they might faced in the future.

From here, I learned that these process is very similar to evaluate tenderer's background and their financial status. It is very important process which we Quantity Surveyors would like to recommend the best performance tenderer instead of a poor one to our Client, this is to avoid causing our Client loss their profit due to a poor performance tenderer.