Net present value = 1,645,000 – 2,000,000 = ($355,000) so reject the project.
The following information was included with the draft investment appraisal:
1. The initial investment is $2 million
2. Selling price: $12/unit (current price terms), selling price infl ation is 5% per year
3. Variable cost: $7/unit (current price terms), variable cost infl ation is 4% per year
4. Fixed overhead costs: $500,000/year (current price terms), fi xed cost infl ation is 6% per year
5. $200,000/year of the fi xed costs are development costs that have already been incurred and are being recovered by an annual charge to the project
6. Investment fi nancing is by a $2 million loan at a fi xed interest rate of 10% per year
7. OKM Co can claim 25% reducing balance capital allowances on this investment and pays taxation one year in arrears at a rate of 30% per year
8. The scrap value of machinery at the end of the four-year project is $250,000
9. The real weighted average cost of capital of OKM Co is 7% per year
10. The general rate of infl ation is expected to be 4?7% per year
Required:
(a) Identify and comment on any errors in the investment appraisal prepared by the trainee accountant. (5 marks)
(b) Prepare a revised calculation of the net present value of the proposed investment project and comment on the project’s acceptability. (12 marks)
(c) Discuss the problems faced when undertaking investment appraisal in the following areas and comment on how these problems can be overcome:
(i) assets with replacement cycles of different lengths;
(ii) an investment project has several internal rates of return;
(iii) the business risk of an investment project is signifi cantly different from the business risk of current operations. (8 marks)
A.Project(项目)和Timeline(时间线)
B.Timeline(时间线)
C.Project(项目)
D.以上答案都不对
A.最高容许50PPM
B.最高容许40PPM
C.爆炸极限12.5%到74.2%
D.爆炸极限15%到74.2
E.无色无臭2000PPM30分钟致死,200PPM头疼
A.服务时间
B.地位
C.服务对象
D.权力
A.Project(项目)窗口
B.Monitor(监视器)窗口
C.Timeline(时间线)窗口
D.Capture(采集)窗口
(Project Dragram,或称WBS—Work Breakdown Structure)是一个组织工具,它通过树状图的方式对一个项目的结构进行逐层分解,以反映组成该项目的所有工作任务。
A.组织结构图
B.项目结构图
C.工作任务分工表
D.工作流程图