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equired :   1) Calculate the following investment appraisal criteria for THREE optional projects Selection is from your own choice : Accounting Rate of Return Payback period      3. NPV (Select a cost of capital at your own choic       4. IRR ((Select a cost of capital at your own choice (Note: Refer the attached PV table)     .2) Comment on each criterion and take the final decision with justification (Word limit: 200-300)

equired :   1) Calculate the following investment appraisal criteria for THREE optional projects Selection is from your own choice : Accounting Rate of Return Payback period      3. NPV (Select a cost of capital at your own choic       4. IRR ((Select a cost of capital at your own choice (Note: Refer the attached PV table)     .2) Comment on each criterion and take the final decision with justification (Word limit: 200-300)

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.18E
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Required : 

 1) Calculate the following investment appraisal criteria for THREE optional projects Selection is from your own choice :

  1. Accounting Rate of Return
  2. Payback period

     3. NPV (Select a cost of capital at your own choic

      4. IRR ((Select a cost of capital at your own choice

(Note: Refer the attached PV table)

 

  .2) Comment on each criterion and take the final decision with justification (Word limit: 200-300)

 

  Note: Use a suitable format (introduction, calculation, comments and conclusion)  and    provide the answer as a management report. It is advisable to use MS Excel for relevant calculations where appropriate.

Optional Project Governorate Initial Years: Values in OMR Investment 2022 2023 2024 2025 2026 2027 Ad Land 30000 5000 7000 15000 14000 22000 Nil development Dakhiliyah Ad Dhahirah Ceramic 24000 8000 5000 10000 4000 12000 10000 products Al Batinah Fish 54000 6000 9000 12000 11000 10000 12000 North Processing Batinah Clay and pots Al 18000 6000 5000 7000 9000 8000 6000 South Al Buraymi Desert 50000 12000 5000 20000 22000 10000 Nil camping Al Wusta Rock Garden 100000 20000 25000 18000 26000 22000 Nil Ash Ship Building 84000 16000 14000 12000 40000 30000 35000 Sharqiyah North Ash Turf racing 42000 8000 7000 6000 14000 15000 20000 Sharqiyah track South Dhofar Hotel chain 150000 26000 25000 20000 50000 35000 29000 Muscat Oil refinery 120000 22000 30000 50000 40000 24000 20000 Musandam Date farming 48000 20000 25000 14000 9000 60000 8000
Transcribed Image Text:Optional Project Governorate Initial Years: Values in OMR Investment 2022 2023 2024 2025 2026 2027 Ad Land 30000 5000 7000 15000 14000 22000 Nil development Dakhiliyah Ad Dhahirah Ceramic 24000 8000 5000 10000 4000 12000 10000 products Al Batinah Fish 54000 6000 9000 12000 11000 10000 12000 North Processing Batinah Clay and pots Al 18000 6000 5000 7000 9000 8000 6000 South Al Buraymi Desert 50000 12000 5000 20000 22000 10000 Nil camping Al Wusta Rock Garden 100000 20000 25000 18000 26000 22000 Nil Ash Ship Building 84000 16000 14000 12000 40000 30000 35000 Sharqiyah North Ash Turf racing 42000 8000 7000 6000 14000 15000 20000 Sharqiyah track South Dhofar Hotel chain 150000 26000 25000 20000 50000 35000 29000 Muscat Oil refinery 120000 22000 30000 50000 40000 24000 20000 Musandam Date farming 48000 20000 25000 14000 9000 60000 8000
Present Value of $1 Table 1 Factor = (1 + 1)" Rate () 1% 2% 3% 5% 8% 10% 12% 15% 20% 1 0.990 0.980 0.971 0.952 0.926 0.909 0.893 0.870 0.833 2 0.980 0.961 0.943 0.907 0.857 0.826 0.797 0.756 0.694 3 0.971 0.942 0.915 0.864 0.794 0.751 0.712 0.658 0.579 4 0.961 0.924 0.888 0.823 0.735 0.683 0.636 0.572 0.482 0.952 0.906 0.863 0.784 0.681 0.621 0.567 0.497 0.402 6 0.942 0.888 0.837 0.746 0.630 0.564 0.507 0.432 0.335 7 0.933 0.871 0.813 0.711 0.583 0.513 0.452 0.376 0.279 8. 0.924 0.853 0.789 0.677 0.540 0.467 0.404 0.327 0.233 0.914 0.837 0.766 0.645 0.500 0.424 0.361 0.284 0.194 10 0.905 0.820 0.744 0.614 0.463 0.386 0.322 0.247 0.162 11 0.896 0.804 0.722 0.585 0.429 0.350 0.287 0.215 0.135 0.788 0.773 12 0.888 0.701 0.557 0.397 0.319 0.257 0.187 0.112 13 0.879 0.681 0.530 0.368 0.290 0.229 0.163 0.093 14 0.861 0.758 0.661 0.505 0.340 0.263 0.205 0.141 0.078 15 0.861 0.743 0.642 0.481 0.315 0.239 0.183 0.123 0.065 16 0.853 0.728 0.623 0.458 0.292 0.218 0.163 0.107 0.054 17 0.844 0.714 0.605 0.436 0.270 0.198 0.146 0.093 0.045 18 0.836 0.700 0.587 0.416 0.250 0.180 0.130 0.081 0.038 19 0.828 0.686 0.570 0.396 0.232 0.164 0.116 0.070 0.031 20 0.820 0.673 0.554 0.377 0.215 0.149 0.104 0.061 0.026 (u) pouad
Transcribed Image Text:Present Value of $1 Table 1 Factor = (1 + 1)" Rate () 1% 2% 3% 5% 8% 10% 12% 15% 20% 1 0.990 0.980 0.971 0.952 0.926 0.909 0.893 0.870 0.833 2 0.980 0.961 0.943 0.907 0.857 0.826 0.797 0.756 0.694 3 0.971 0.942 0.915 0.864 0.794 0.751 0.712 0.658 0.579 4 0.961 0.924 0.888 0.823 0.735 0.683 0.636 0.572 0.482 0.952 0.906 0.863 0.784 0.681 0.621 0.567 0.497 0.402 6 0.942 0.888 0.837 0.746 0.630 0.564 0.507 0.432 0.335 7 0.933 0.871 0.813 0.711 0.583 0.513 0.452 0.376 0.279 8. 0.924 0.853 0.789 0.677 0.540 0.467 0.404 0.327 0.233 0.914 0.837 0.766 0.645 0.500 0.424 0.361 0.284 0.194 10 0.905 0.820 0.744 0.614 0.463 0.386 0.322 0.247 0.162 11 0.896 0.804 0.722 0.585 0.429 0.350 0.287 0.215 0.135 0.788 0.773 12 0.888 0.701 0.557 0.397 0.319 0.257 0.187 0.112 13 0.879 0.681 0.530 0.368 0.290 0.229 0.163 0.093 14 0.861 0.758 0.661 0.505 0.340 0.263 0.205 0.141 0.078 15 0.861 0.743 0.642 0.481 0.315 0.239 0.183 0.123 0.065 16 0.853 0.728 0.623 0.458 0.292 0.218 0.163 0.107 0.054 17 0.844 0.714 0.605 0.436 0.270 0.198 0.146 0.093 0.045 18 0.836 0.700 0.587 0.416 0.250 0.180 0.130 0.081 0.038 19 0.828 0.686 0.570 0.396 0.232 0.164 0.116 0.070 0.031 20 0.820 0.673 0.554 0.377 0.215 0.149 0.104 0.061 0.026 (u) pouad
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