Track: High School STEM Project Presentation

Abstract

Companies tries to minimize the risk of the investment by using the financial management but to maximize the benefits of the company which is the final goal of the company. Finance department in an enterprise, dealing with the various factors of financial decision-making to achieve the goals of the management, tries to maximize its corporate value. In the financial business, many companies analyze their financial decision-making, investment decision-making, capital procurement and dividend decisions, and the governance structure of the company, and mergers, considering the management of current assets and fixed assets. From the several points of view, there is a purpose of the company depending on the academic area. However, the financial management is dealt with in this paper. Financial officer general enterprise, it is necessary to determine to what invest in any assets to maximize the value of the company, that such a decision and the investment decision or capital budgeting. Generally, a reasonable investment setting of the required investment is planned for the investment. The selection of investments is included in activities such as cash flow of measurement. However, the capital budget financial field is typically used in a narrow sense. Measuring the cash flow of investment during investment focuses on the process of making the best investment decision through the economic analysis. Most in investment to be capital budgets tend to require more expenses in the initial investment, by investing a large scale of capital for production facilities, companies, and possibility of loss of liquidity. In order to analyze the cash flow in the investment, it is needed to understand the financial statements of companies. A financial statement is the table that has summary of the same content as the financial condition and management achieved by companies through the accounting language. It will be to organize the financial activities, and the outcome is financial statements. That most important way to use financial information is to be derived from the financial statements from a cash flow.

On the basis of the benefits that business owners have calculated by using the financial statements, they actually have the investment decision, but there are four problems. Valuation in the investment is to reflect the economic substance. It should be carried out on the basis of the cash flow. Mathematical programming is used in this paper. Linear theory, which is linearly programming formula, is all the linear expressions. It can be represented linearly, using a variety of methods. The plan activities using several methods, other production calculation technique of the one primary function to the maximum or minimum in the background, but activity plan, but broadly speaking is the most advantageous overall adjustment to each other related activities. Mathematically, linear programming is the analysis of the problem of several variables with the linear first-order function of the variable in applications constrained by the form of linear inequalities to maximize or minimize. The linear programming method is limited to the secondary function, but it plays a very important role in the production activities in several types of companies. Also, satisfying some of the constraints in many applications is to find the value of a variable what function is to have a maximum or minimum value. Definition of investment, which can be relied on what type of work and capital of the business in order to obtain the benefit, should be given. While investment can obtain future revenue from current economic expense, no one can guarantee the future revenue. Compensation when it is invested in high risk assets such as stocks, than some other reward, the higher future of uncertain even more appropriate compensation is required for that risk. When investors assess what investment proposal will be evaluated from the point of view of the risks related with investment income which is expected from the investment. Less risky investments, the lower expected rate of return, in order to increase the expected rate of return is the reverse, reciprocal relationships that unless underwriting an additional risk exists. In order to make an investment to make up for the portfolio, rather than the expected return and risk of the relationship of the individual assets, the relationship between risk and expected return of the overall portfolio is an important concern. A traditional portfolio optimization problem means that the problem of rate of return and risk will find the proposal of the business that to reasonably constitute a balance. For the formation of the concrete financial structure of the company, it is essential to have stable investment and project execution in consideration of the cash flow and the tangible and intangible constraints which the current companies are facing. One solution that has been proposed as a measure to solve the problems on this management is precisely Weingartner problem. Weingartner problem is to consider the cash flows of the unit period; it is possible to set an efficient model community of interest, selection variable projects, and inflow and outflow processes capital. In this paper, the objective expression of Weingartner shows the model with the status of the cash flow for the virtual of project execution of the company in the flowchart of the processed virtual enterprise of cash for optimization in the investment by applying the Weingartner model and configuring as an optimized cash flow. In addition, it is necessary to repair planning models, using LINDO program software to determine the optimized solution based on the specified algorithm, and to find an optimal investment plan.