题目内容 (请给出正确答案)
[主观题]

The following draft appraisal of a proposed investment project has been prepared for the f

i nance director of OKM Co by a trainee accountant. The project is consistent with the current business operations of OKM Co.

The following draft appraisal of a proposed invest

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)

提问人:网友yanghaibin 发布时间:2022-01-07
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更多“The following draft appraisal …”相关的问题
第1题
Which of the following terms refers to an appraisal that is too open to interpretation?

A、unclear standards

B、halo effects

C、leniency

D、biased

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第2题
As to the risks undertaken by the seller under the terms of payment by L/C, D/P and D/A,which is correct?( )

A、L/C<d> B、L/C<d> C、D/A<d> D、D/P<d>

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第3题
I am glad to tell you that the shipping company has accepted for the damage done to the precision instruments.

A、duty

B、liability

C、obligation

D、responsibility

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第4题
in some way the employment interview is like a persuasive speech, for the applicant seeks to persuade the employer to employ him or her.a job applicant should find interview.fist, the applicant should know what kind of job he wants and how that job relates to his career objective.it is important that the applicant be able to state of the company.second, the applicant should seek as much information as possible concerning the company.the applicant should find out the location of the home and region plans for expansion, and company philosophy.

having gathered enough information concerning the company.the applicant is ready for the interview.the interviewer’s first impression comes from the interviewee’s appearance.for most interviews, appropriate dress for men is a conservative(保守的)dank-colored suit with a long-sleeve while or light blue shirt.for women a conservative.tale suit or dress appropriate. both men and women should have neat.,conservation length, of hair.

although gathered and dress are maters of taste, many person direction judge interview from their appearance directly, for example.one recent college graduate who felt himself qualified was interviewed for a public relations job.however, the personnel manager considered this young man unsuitable for this particular position for his long hair, sloppy(不整洁) dress.,and casual manner.

36.Before the interview, a job applicant should be clear about_

A.the relationship between his career objective and the job

B.when and where the interview will take place

C.who will also take part in the interview

D.the process of the interview

37.Which of the following is NOT mentioned as the information the applicant has to find out?

A.The company’s location.

B.The company’s financial status.

C.The company’s expansion plans.

D.The company’s history.

38.According to the passage, which of following statements is true?

A.Before the interview.the applicant may neglect the company’s philosophy

B.Before the interview, the applicant should be Clear about the name of the manager

C.In the interview, Ir s appropriate for the applicant to be dressed conservatively

D.In the interview' s not suitable for the applicant to try to persuade the employer to employ him

39.The most suitable dressing for men in a job interview is to wear.

A.a colorful shirt

B.a sloppy dress

C.a pair of casual shoes

D.a dark-colored suit

40.From the example in the passage, we may conclude that.

A.self-confidence is the key point

B.first impression is vital

C.personal taste is essential

D.work experience is very important

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第5题
The financial benefits of a new investment consist of the increased sales revenues it generates.
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第6题
One reason that capital expenditure may be incurred is to maintain the earning capacity of existing non-current assets.
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第7题
What is not the cash flow timing conventions used in DCF?

A、A cash outlay to be incurred at the beginning of an investment project occurs in year 0.

B、A cash outlay, saving or inflow which occurs during the course of a time period is assumed to occur all at once at the end of the time period.

C、A cash outlay to be incurred at the end of an investment project occurs in year 0.

D、A cash outlay or receipt that occurs at the beginning of a time period is taken to occur at the end of the time period.

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第8题
For a certain project, the net present value at a discount rate of 15% is $3,670, and at a rate of 18% the net present value is negative at ($1,390). What is the internal rate of return of the project?

A、15.7%

B、16.5%

C、16.6%

D、17.2%

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