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Determine the steps for managing the funds
For managing the funds first thing you would need is information. Externalinformation has to be collected from environment and accounting provides internalinformation about firm's operations. Accounting can be described as an informationand measurement system which identifies, records and communicates relevant informationabout a company's economic activities to people to help them make better decisions. You will now agree that a company needs to manage its own funds efficiently however your question still remains "Why am I concerned with it?" Further arguing you would say that,"I am going to specialise in Information Technology/Marketing /Human Resource Management/Operations Management and there is no need for me to learn finance.Furthermore Finance is a separate function in my organisation (or the organisation which I amgoing to work for) and I am barely going to use finance to work in my respectivedepartment."
Given below are the cash flows of a project. Find out the net present value of the project. Cost of capital is 18% and initial investment is Rs. 2,00,000. Year Cash Flows (lakhs)
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