Details for BUS202 Financial Decision Making

In today’s fast-paced financial landscape, informed decision-making is key to personal and organisational success. Financial Decision Making equips students with vital skills, focusing on strategic and everyday financial choices. With practical case studies from Australia and beyond, the unit covers the time value of money, risk evaluation, and cash flow analysis. Students will learn how to apply financial planning strategies to navigate complex challenges effectively.

Quick Stats

• Currently offered by Alphacrucis: Yes
• Course code: BUS202
• Credit points: 10

Subject Coordinator

Prerequisite

The following is a prerequisite:

• BUS105 Quantitative Skills for Business 

Unit Content

Outcomes

1. Evaluate the role of financial management within an organization through the understanding of capital budgeting and structuring, including ethical discussions 
2. Apply the time value of money concept to calculate the value of financial assets and investments to meet a firm’s objective 
3. Apply capital budgeting techniques towards a firm’s operations and goals 
4. Recognise the elements and key players within the financial market and determine how it affects the individual, firm or organisation 
5. Interpret financial data and trends and make recommendations towards a firm/organisation’s objectives 

 

Subject Content

1. Introduction to financial management
   • The role of financial management 
   • Tax environment 
   • Financial markets 
2. Time Value of Money (TVM)
   • Simply and compound interest 
   • Present value and future value 
   • Simple annuities
3. Application of TVM
   • Loans
   • Valuing (new) bonds
4. Financial Planning and Analysis
   • Firm’s financial performance and position
   • Financial forecasting, planning and budgeting 
   • Working-capital management  
5. Risk and rates of return
6. Introduction to valuation
   • Market value of bonds  
   • Valuing shares    
7. Introduction to Capital Budgeting
   • Concepts and methods 
   • Net present value (NPV) 
   • Internal rate of return (IRR) 
8. Capital Budgeting II – cash flow/projects
   • Cash-flow identification  
   • Multiple projects and mutually exclusive projects 
   • Project ranking conflicts 
9. Capital Budgeting III – incorporating risk
10. Financial decision making in the government and NFP sectors
11. Managing the cost of capital
12. Financial modelling

This course may be offered in the following formats

• Face to face (extensive)
• Face to face (intensive)
• E-learning (online)

Please check the timetable to see when this subject will next be offered at Alphacrucis University College.

Assessment Methods

• Online Quizzes (30%)
• Case Study Report (20%)
• Final Exam (50%)

Prescribed Text

• Titman, S., Martin, T., Keown, A.J. & Martin, J.D. (2023). Financial Management: Principles and Applications (9th ed.). Frenchs Forest, N.S.W: Pearson Australia