PRINCIPLES ASSOCIATED WITH FINANCIAL AND RESOURCE MANAGEMENT

You are a trainee manager of the Kingston Surveying Consultancy (KSC). This is a construction, design and management company employing 357 people in the UK, West Indies, Dubai, Hong Kong, India and Pakistan. You are being rotated around the company offices to get a broad based experience of the business and currently you are in the finance department. Your line manager, Danielle Humbolt, has been tasked with deciding on the choice of IT equipment for Kingston, and she has delegated part of the task to you. Specifically, she would like you to carry out and report on the 4 different, shortlisted financial bids that have been received. The details are anonymised to ensure ‘fair play’:
Danielle has told you that the company uses a discount rate of 10%.
Task
Write a formal report to Danielle that explains unambiguously, the supplier that you would choose together with your reasoning.
Danielle has asked that you appraise these figures using a mixture of techniques that rely on discounted and non-discounted methods, and has requested that full calculations be appended to the report as well as an explanation of what the results show. She has further requested that you include two further items:
• Suggestions as to how to finance this investment;
• An outline of the possible risk issues.
She does not expect any calculations for these factors, simply explanations.