Title: Resource Allocation
1Resource Allocation
2Resources
- Allocation of resources
- Marketing
- Human
- Financial
- Technical
- Political capital
- Short Term Plans
- Long Term Plans
3Marketing
- Constituencies
- Students
- Faculty
- Donors
- Government officials
- Leadership responsibility
- Plan
- Research
- Positional
- Goals
- Implementation
4Human Resource Needs
- Personnel selection/recruitment
- Management and Incentives
- Organizational Chart
- Managerial style
5Financial Resource Allocation
- Balance Sheet
- Income Statements
- Operating Budget
- Cash Budget
- Capital Budget
- Sources and Uses of Funds
- Present value
6Present value
- Y Income
- P Present value
- R Interest rate
- Rate of return
- Discount rate
- Capitalization rate
7Time value of money
- Y P . R
- Y1 P PR
- Y1 P (1 R)
- Y1
- (1R)
P
8Time value of moneyYear 2
- Y2 Y1 Y1 . R
- Y2 P (1 R) P (1 R) . R
- Y2 P PR PRPR2
- Y2 P 2PR PR2
- Y2 P (1 2R R2)
- Y2 P (1 R) 2
- Y2
- (1R) 2
P
9Time Value of MoneyGeneral Formulations
P
N 8 P
Y
R
10Bank example
- Y P . R
- 100 1000 _at_ 10 Interest
11Applications
- Home Mortgages
- Loans/Borrowings
- Stocks/Bonds
- Buildings
- Laboratories
- Endowment
12Role of Information Technology
- National Science Foundation (NSF)
- Education and Research
- Pervasive
- Commerce
- Health
- Economic
- Impact on developing world