Accounting Homework

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acc600_week_7_assignment_template.xlsx

Exercise 1

Name: <Name>
ACC 600: Accounting and Finance for Managers
Assignments: Week Seven
Exercise #1
Using payback to make capital investment decisions
White Co. is considering acquiring a manufacturing plant. The purchase price is $1,350,000. The owners believe the plant will generate net cash inflows of $329,000 annually. It will have to be replaced in six years.
Instructions
Use the payback method to determine whether White should purchase this plant. Round to one decimal place.
Payback = Formula in words
= #s for formula
= Calculation using Excel formula
Should White purchase this plant? Why or why not?

Exercise 2

Name: <Name>
ACC 600: Accounting and Finance for Managers
Assignments: Week Seven
Exercise #2
Using IRR to make capital investment decisions
Refer to following data regarding Juda Products.
·       Project A: Costs $290,000 and offers seven annual net cash inflows of $57,000. Juda Products requires an annual return of 14% on investments of this nature.
·       Project B: Costs $395,000 and offers 10 annual net cash inflows of $70,000. Juda Products demands an annual return of 12% on investments of this nature.
Instructions
Compute the IRR of each project and use this information to identify the better investment.
Project A:
Annuity PV Factor = Formula in words
= #s for formula
= Calculation using Excel formula
Annuity PV Factor Factors used to determine PV Factor
Project B:
Annuity PV Factor = Formula in words
(i = ?%, n = 10)
= #s for formula
= Calculation using Excel formula
Annuity PV Factor Factors used to determine PV Factor
Which is the better investment and why?

Grading Rubric

Faculty Name: Dr. Bolden
Course Name: ACC-600-1622-Accting & Fin for Managers
Student Name: 0
Assignment 7
Students complete the following worksheet: ACC 600 Assignments Week Seven
Student Proficiency 71.82
Basic Developing Accomplished Advanced Exceptional
EVALUATION CRITERIA Total Weight Possible Points 0-69% 70-79 % 80-89% 90%-99% 100% Comments for Student Points
SCOPE - How well does the student’s work incorporate all aspects of the assignment’s elements and the learning outcome(s)? 40% 28.7 The assignment contains few of the assignment elements and reflects few, if any, aspects of the specified learning outcome(s). The assignment reflects some of the assignment elements and aspects of the specified learning outcome(s). The assignment reflects most of the assignment elements and aspects of the specified learning outcome(s). The assignment reflects all assignment elements and aspects of the specified learning outcome(s). The assignment elements are comprehensive, incorporated throughout the paper, and content not relevant to the assignment has been excluded.
ACCURACY - How accurately does the student use the course concepts, vocabulary, and principles learned in the course? 40% 28.7 Very few, if any, learned concepts, terms, and principles are used correctly throughout the assignment. Some of the learned concepts, terms, and principles are used correctly throughout the assignment. Most of the learned concepts, terms, and principles are used correctly throughout the assignment. All of the learned concepts, terms, and principles are used correctly throughout the assignment. This assignment reflects a thorough understanding of course content from the specified weeks, by applying the concepts and vocabulary in the appropriate context.
APPLICATION - How well does the student use critical thinking to apply the course concepts, vocabulary, and principles learned in the course throughout the assignment and connect the learning outcomes to current or real world situations? 10% 7.2 Very few, if any, course concepts are presented within the student’s assignment, and little analysis is provided. Course concepts are presented, but few, if any, are demonstrated through the student’s use of critical thinking supported by course concepts. Most of the course concepts are addressed and the student has used an adequate amount of critical thinking to apply them to the assignment. The assignment addresses the course content throughout the assignment that applies the concepts with demonstrated critical thinking This assignment applies the content to specific real world examples, analyzing the concepts from different perspectives. Direct quotations are used sparingly and thoughts expressed in the student's own words that demonstrate student's ability to assimilate/apply/extend concepts beyond the content derived from research sources.
ORGANIZATION AND COHERENCE - How well does the student make use of Excel to complete the requirements of the assignment. 10.00% 7.2 Excel was not used; not all formulas were provided. Student used Excel, although did not use formulas or show how numbers were computed. Student used Excel and formulas for some of the computed answers. Student used some formulas in Excel and/or showed how all numbers were computed. Student used Excel formulas for all computed answers. Be sure to always show your work by either using formulas or typing out your computations for ALL computed numbers.
100.00% Total grade 0.00