Potential profitability. Contribution to working capital. The number of accounting periods. Effect of inflation. Development of a new product exemplifies a capital investment; the bulk purchase of raw materials is a current investment. A capital budgeting project spans more than one accounting period whereas current investments can be written often in the same period in which the expenses occur. Question 3: 2D1-AT05 Which one of the following is most relevant to a manufacturing equipment replacement
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importance of capital budgeting cannot be exaggerated. Some of the reasons for this importance are mentioned below: • Capital budgeting involves a greater amount of risk on account of unforeseen situations. Capital is generally invested with the expectation of future benefits which are likely to accrue over a long period of time. Therefore‚ a right decision has to be taken to ensure a favorable impact on the profitability and competitive position of the firm. • Capital budgeting decisions are not
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Argumentative Essay: Vivisection‚ an unnecessary and immoral practice Vivisection is the experimentation on live animals. This is a very controversial topic nowadays due to moral reasons. It is a dreadful and torturous act‚ where innocent animals are distressed physically and/or psychologically worldwide by scientists‚ doctors‚ and students in the name of science. These animals include hamsters‚ guinea pigs‚ pigs‚ rabbits‚ sheep‚ mice‚ cats‚ dogs‚ and monkeys. Vivisection supporters
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Round 3 of the 2014 NRL season marked a weekend that would forever change the lives of many rugby league stars. One year into his first grade career with the Melbourne Storm‚ 23 year old Jordan McLean‚ alongside fellow teammates Jesse and Kenny Bromwich‚ became involved in a dangerous tackle on Newcastle Knights front-rower‚ Alex McKinnon. The two brothers took hold of McKinnon‚ but needed assistance to bring him to ground. McLean came to their call‚ making it a three man tackle
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CHAPTER 4 PART II: VALUATION AND CAPITAL BUDGETING Discounted Cash Flow Valuation The signing of big-name athletes is often accompanied by great fanfare‚ but the numbers are often misleading. For example‚ in late 2010‚ catcher Victor Martinez reached a deal with the Detroit Tigers‚ signing a contract with a reported value of $50 million. Not bad‚ especially for someone who makes a living using the “tools of ignorance” (jock jargon for a catcher’s equipment). Another example is the contract signed
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Market Segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs‚ and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow to reach them. Market segments allow companies to create product differentiation strategies to target them. Criteria for segmenting An ideal market segment meets all of the following criteria: * It is possible to measure
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TIME VALUE OF MONEY Time value of money refers to an individual preference of a given amount of cash now rather than the same amount at some future time. The reasons why an individual would prefer cash now: i) Subjective preference for present consumption – one may prefer present consumption over future consumption of goods and services because of the urgency of present wants or the risk of not being in a position to enjoy future consumption. ii) Availability of investment opportunities –
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Outcome:- On completion of this unit‚ a student shall be able to: Explain the role of capital budgeting techniques in the capital budgeting process. Calculate‚ interpret and evaluate payback period‚ net present value‚ profitability index and internal rate of return. 9-1 What are the most commonly used capital budgeting procedures? Why is capital-budgeting decision so important? Why are capital-budgeting errors so costly? 9-2 The treasurer of Anthony Press. has projected the cash flows of projects
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Federal Budgeting and Accounting Cayce Harris ACC-548 01-15-2015 Mindi Smedley Federal Budgeting and Accounting What roles do accountants play in managing government and not-for-profit organizations? According to Granof‚ “conventional‚ business-type management accounting focuses mainly on maximizing net inflow of cash. The aims of governments and not-for-profit organizations‚ of course‚ go well beyond maximizing cash flow” (Granof‚ 2013). Accountants in government and not-for-profit organizations
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sum 1. VC have expertise‚ and resourses in the venture capital industry‚ their votes is valuable for making decisions. 2. Benefit for VC‚ they could decide the direction of the company for their interest. 3. Benefit for the venture too. VC share many common goals (not all) with the venture itself‚ so vote can be valuable for the venture to prevent some bad decision. 1. Cost to venture is sometimes the venture could not make decision in a best way for the purpose of the development of itself‚ like
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