Sheet1 Question 1: Capital Budgeting Techniques a) Timeline b) NPV Calculation c) IRR Calculation YearCash Flow 0 1 2 3 4 5 IRR d) Payback period calculation e) Accept or reject? Question 2: NPV...

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Sheet1 Question 1: Capital Budgeting Techniques a) Timeline b) NPV Calculation c) IRR Calculation YearCash Flow 0 1 2 3 4 5 IRR d) Payback period calculation e) Accept or reject? Question 2: NPV Calculation with taxes Perform calculation here: Assessment 1 is worth 20% of the final grade. Each Part (Part A and Part B) is of equal value (10%). Part B evaluates your calculative skills and Excel skills. Marks are awarded for accuracy as well as formatting and use of appropriate Excel formulas. 'Formatting' refers to use of colours to highlight important elements and answers. Play around with the colour schemes. Present the Excel spreadsheet as though you were presenting it to your manager at a business. You may also organise information in any way you see fit. 'Excel formulas' should be entered in the appropriate cells which are bordered in bold. Marks are awarded as follows: Accuracy and completeness: 6 out of 10 Use of formatting: 2 out of 10 Use of appropriate formulas: 2 out of 10 ACC 303: Assessmet 1 Part B: Excel Assignment (10%) Dahmbogan International Ltd (Bogan) is deciding whether to replace an existing machine which it uses to produce vaccuum cleaners. The old machine can be used for 5 more years and would generate cash inflows of $6000 per year. It would cost Bogan $2000 in wages to run the machine. Alternatively, it can be sold now for $12,000 which is its carrying amount recorded in the books (there is no gain or loss). The new machine would cost $180,000 as a one off cash payment. Because of its increased efficiency, the new machine would generate cash inflows of $48,000 per year for the next 5 years and would cost $3000 per year to run. These are not incremental cash flows. After 5 years of operation it can be sold for $5000. Bogan requires an 8% return on similar investments. Ignore depreciation and taxes for this question. Required: a) Draw a timeline showing the cash inflows and outflows relating to this investment. You may use Excel tools to do this or use another program such as MS Paint and then copy paste your image into the space provided. b) Calculate the NPV of purchasing the new machine. Use the space provided. You can use any approach you like (i.e. by using an Excel function or by just showing the calculation). c) Calculate the IRR of this project. Use the IRR Excel function to complete this task. You wil have to do a bit of research on how to do this. Try this website but please ignore step 6: https://www.techwalla.com/articles/how-to-calculate-irr-in-excel d) What is the payback period of this project? e) Should Bogan accept or reject the project? Explain why. (Enter text here) Bogan is deciding whether to buy another depreciable asset. This asset will cost $240,000 and will generate incremental cash inflows of $55,000 per year. The asset has a 6 year useful life after which time it will be trashed (no residual value). Bogan requires a 10% rate of return on similar projects. Required: Calculate the NPV of this project assuming the corporate tax rate is 30%. (Hint: You will need to follow similar steps to Question 1, but you must also perform another step which is the calculation of the tax shield. This tax shield value is an additional cash inflow (cash saving) which will be added to the incremental cash flows. Go to the lecture notes if you don't remeber how to do this. Email me if you are really struggling) ACC303 Advance management Accounting Major Assignment Question ACC303 ADVANCE MANAGEMENT ACCOUNTING MAJOR ASSIGNMENT QUESTION Part A: Write an essay and case study (1500 words) (15%) Written report submission due date is Friday 24/1/2020 by 5:00pm. Submission: Online on my PIA via Turnitin submission link. You must attach a completed, signed coversheet and a self and peer contribution evaluation form with your written assignment. You must attach a completed, signed coversheet with your written assignment. Essay topic: The recent initiative for the integrated reporting (IR) framework is considered to be a potential way forward towards augmentations if we are to provide a credible short-, mid- and long-term visions of an entity’s impressions on wealth trajectories (Lodh 2018). Corporate Integrated Reporting (IR) initiative by the International Integrated Reporting Council (IIRC) and their recent IR framework (IIRC 2013) could be considered as a potential turning point in developing differing forms of corporate reporting norms including integrating strategic information for ‘financial’, ‘manufactured (infrastructure)’, ‘intellectual’, ‘human (people)’, ‘social and relationship (stakeholders/partners)’ and ‘natural’ capitals. Required: Based on the above arguments, write an essay on the relevance of Integrated Reporting Framework in the contemporary corporate world. In your demonstration you should highlight as to whether IR Framework is used by a wide range of private and public sector organisations in corporate reporting. Also, explain whether integrated reporting has had any influence on strategy and control on organisations business model including value creation and strategic control. You also need to demonstrate as to how six capitals as has been mentioned in the above statement under Integrated Reporting Framework may impact the role of strategic management accounting. The expectation is that a reasonable amount of research articles (academic and professional) are used in the body of the essay. (Limit: approximately 1500 words) For all other requirements please follow the subject outline ACC303. References: Lodh, S. C. (2018), Conventional accounting in determining an enterprises wealth: Sign or referent a theoretical discourse for augmentation, International Journal of Critical Accounting, Inderscience, (in press) http://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR- FRAMEWORK-2-1.pdf [online] accessed on 3 August 2018 at 2:51pm. Hint: You can access scholarly articles on Integrated Reporting on Google Scholar web site. Case Study The topic that relates to the case study assignment is on Integrated Reporting Framework. You are required to investigate one listed company in major stock exchange that is using integrated reporting in its annual report. Instruction for the case study: You are required to down load the annual report of a company which is using integrated reporting. Then, address issues related to integrated reporting and strategic management aspects that are reported. You can attach the relevant section as appendices. (Please note that those will not be counted within the word limit.) The second part (Part B = 10%) will be the individual component - An oral presentation - which will be based on the completion of the written part. Presentation – need to delivered during week 11 and 12 in group. http://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf http://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf ACC 303 s1 2020, Assessment 1 This is an individual assignment. It contributes 20% towards your overall mark for the subject. It consists of 2 parts and each part is worth equal marks (10% each) Spaces are provided for answers, but if you need more space just continue writing. When you save your answers, please include your name and student ID as part of the file name. E.g. “ACC 303 s1 2020 Assessment 1 Jonathan Halloran 97289332” Attach both files to an email and submit your files directly to: [email protected] Part A (10%) Short Answer Questions Question 1: Businesses must make informed decisions about the allocation of scarce resources. Some decisions will involve consideration of whether to invest in capital investment projects. In class we looked at 3 different approaches to capital budgeting. Describe these three approaches (NPV, IRR and Payback Period) and state which technique you think is best. A good answer here will involve consideration of corporate context. For example, one technique may not be best for all scenarios. Question 2 (a – d): Michael Porter’s Five Forces Model is an indispensable tool which can be most helpful when developing business strategy. Look at this diagram and answer the following questions: a) Identify the step (1 – 12) which Michael Porter’s Five Force analysis adheres to. b) What other management accounting analytical tools can be used in this step? Provide two examples and describe these briefly. c) Michael Porter has identified airlines in his (2008) article as a particularly unprofitable industry to enter as a new business. Based on the Five Forces Model, explain why you think this industry is particularly unprofitable. d) Given that airlines are proven to be unprofitable, why do you think there are so many new entrants into this very difficult marketplace? Some research may be needed here but all I want is to understand YOUR opinion on the matter.