ACC346 week 7

Asked by bizgrad
Dated: 17th Oct'18 09:15 PM
Bounty offered: $6.00

Week 7 discussion

Capital Budgeting and the Time Value of Money

Let's start with defining capital budgeting. What is capital budgeting? What are the differences between screening decisions and preference decisions?

ACC346 week 7
Answered by bizgrad
Expert Rating: 2387 Ratings
Dated: 17th Oct'18 09:15 PM
5 words and 1 attachment(s).
Tutorial Rating: Not Rated
Sold 1 times.
(preview of the tutorial; some sections have been intentionally blurred)


ACC346-week-7.docx (49.56 KB)
Preview of ACC346-week-7.docx
Cash     IRR,   the ARR     your       Capital   Planning to     Dr       as   Optimize Capital     to       Email   Author6/15/2017 5:41:45     article       small   are the     there       "   size fit     trying       and   profits Harry     PhD       Chief   Officer, and     Smart       and   is what     to       situation   increase in     reduce       in   costs being     percentage       and   your margins     problem       greater   increase than     considering       spent   rebranding your     and       better   some way     restaurant,       completely   the interior     up       by   strong community     an       can   becoming more     having       of   Generally, these     an       you   amortize and     your       to   any increased     customer       decide   your new     A       Increase   Margins: 30     the       Business   Can Improve     Capital       15   2017, from     com/business-insights/how-small-businesses-owners-can-increase-profit-margins       ReadRE:   Capital Investments     increase       this   6:31:45 AMVelocity     faster       (from   to delivery),     your       unit   This in     improved       go   to your     from       how   you speed     process?       you   eliminate? Ways     parts       Can   automate, template,     steps?       out   linkages between     departments       the   Remember, the     make       the   your margins     all       Up-sell   cross-sell to     average       In   when you     amount       your   at one     improve       you'll   increasing the     and       cost   sale in     overhead       can   increase your     of       Can   up sell     offerings?       larger   of purchase?     cross       or   of this     to       cost   a larger     sale       marketing   for each     hence       margin   low-margin clients,     services,       saved   and money     parts       This   that you     and       shows   which clients,     services       Assuming   you do,     "margin       key   services or     see       and   profitable One     we       discovered   their best     clients       costs   their bottom     clients       "scope   in their     work       margin   (i e     third       them   every month     them       retention   costs Do     can       clients   purchasing from     the       points"   your client's     Can       your   system to     attrition?       to   communicate with     to       or   Or give     well-timed       a   visit or     your       or   reduces the     marketing       second   all later     out       and   Is it     issue       you   at forecasting,     too       hand   an order?     take       to   your inventory     lose       toobsolescence?This   also be     in       business   of operations,     buying       sales   can't or     up       marketing   doesn't work     com/david-finkel/5-simple-ways-to-improve-your-profit-margins       as   Optimize Capital     to       Email   Author6/15/2017 7:23:15     modern       the   Investments are:1     Accounting       (ARR)3   present value     rate       first   approaches, payback     accounting       work   for capital     have       lifespan,   as computer     software       well   screening devices     weed       investments   those that     promise       provides   with valuable     how       invested   the asset     The       return   the profitability     investment       on   income Despite     provided       period   ARR, these     are       capital   have a     cycle       do   include the     of       two   net present     internal       including   time value     so       suitable   longer-term capital     first       capital   process is     potential       technology   equipment that     the       competitive,   profitable Employees,     outside       offer   investment proposals     After       investments,   next estimate     net       step   be very     challenging       the   projections possible     information       third   is to     investments       more   the four     previously       involves   two-stage process     first       the   using one     of       do   incorporate the     of       or   rate of     simple       out   investments Potential     “pass       go   to the     of       second   managers further     potential       net   value or     of       these   consider the     of       more   information about     investment’s       method   the potential     a       companies   all four     get       they   about the     Karen       Tietz   Accounting, 4th     Learning       Collapse   as ReadRE:     Investments       profitsOmari   Email this     PMProfessor       that   budgeting is     used       evaluating   ranking potential     investments       in   The large     include       new   rebuilding existing     delivery       to   etc The     spent       of   are known     expenditures       ReadRE:   Capital Investments     increase       this   7:23:48 AMThe     optimize       approving   that would     amount       They   also need     what       replaced   has been     to       to   and make     Collapse       Optimize   Investments Planning     profitsStephanie       Author6/17/2017   AMForecasting profits:     diversified       practice   for business     be       product   or other     These       reviewed   corporate executives,     the       staff   Among the     of       are,   course, estimates     requirements       future   resources: A     of       at   corporate level     make       capital,   and other     among       capital   requests of     add       than   can provide     performance:       the   of forecasting     the       actual   results Suppose     earns       investment   while Division     an       15%   A’s management     effective       should   be rewarded     Mark       Capital   Planning to     Davis       6:09:40   of these     help       it   be wise     large       in   projects, buildings,     1       rate   return (ARR)3     value       of   (IRR) (Braun     W       Managerial   4th Edition     Solutions,       Collapse   as ReadRE:     Investments       profitsLakeeia   Email this     PMHi,By       income   I can     investment,       based   the cost     is       cost   equity This     the       debt   the capital     result       in   company's average     capital       a   in the     the       (2017)   June 17,     http://content       Collapse   as ReadRE:     Investments       profitsCameron   Email this     PMListed       the   to increase     turnaround       and   Discontinuing products     profit       scrap   waste f     as       Email   Author6/12/2017 4:09:35     is       which   business determines     potential       that   large in     expenditures       projects   as building     plant       a   venture Often,     project's       and   are assessed     to       potential   generated meet     target       as   appraisal "     pursue       opportunities   enhance shareholder     because       capital   at any     for       limited,   needs to     budgeting       which   will yield     return       period   time Collapse     ReadCapital       Email   Author6/12/2017 5:55:15     the       a   but managers     lose       long-term   necessary to     strategy       meant   last a     (i       normally   easily reversible     affect       costs)   it does     how       for   decisions to     they       decisions   they expand     the       its   position, introduce     a       service   etc In     long-term       evaluated   on their     the       the   value of     be       enables   to compare     flows       in   near and     Collapse       Present   Claudio Email     3:21:12       net   value evaluate     the       to   the amount     of       Then   discount these     to       using   required rate     Using       value   we identify     value       the   rate of     the       the   flow occurs     value       on   we're looking     one-time       we're   at a     payment       the   flows by     present       determine   present value     the       present   calculations to     net       it's   or more,     required       is   met and     a       negative,   the investment     less       rate   return Week     ACCT346(an       Mark   ReadThe Implications     OptimismProfessor       Author6/14/2017   AMDear Christian     aren’t       that   to estimate     at       g   local, state     prepare       are   to submit     that       are   to cover     Unfortunately,       can   as difficult     even       estimating   revenues For     a       median   government overestimated     10       state   missing by     25%       so   for these     states       taxes,   fluctuate widely     gyrations       on   taxes, which     because       sales   haven’t adjusted     shift       service   and from     to       is   important that     accurately       during   downturns?Source: Conor     Fumble       Street   Online (March     Dr       as   The Implications     OptimismAlisha       Author6/14/2017   PMIt is     government       future   during economic     everyone       tight   goes down,     are       much   This is     for       trying   expand or     If       for   we have     unemployment,       in   case more     and       home   their parents     money       done   you have     and       the   in the     when       back   Retrieved fromhttp://pracademics     Collapse       The   of Budgetary     Email       PMI   Alisha, When     accurately       future   during downturn,     them       operate   and choose     course       the   This can     breaks,       stimulus   keep money     get       Collapse   as ReadRE:The     Budgetary       this   6:31:47 PMIt     for       accurately   future revenues     will       see   they have     to       certain   When there     economic       to   more frugal     can       of   Collapse Mark     Implications       Urbieta   this Author6/16/2017     state       a   they should     of       just   present The     is       important   that a     produces       it   close public     serves       financial   and a     —       description   the policies     intends       the   The spending,     other       comprise   budget have     a       economic   that last     the       however,   focus on     effects       and   to account     longer-term       for   fail to     spending       establish   “rainy day     fail       practices   forecasting revenues,     pension       like   are proven     improve       they   underutilized Collapse     ReadRE:       Budgetary   Smith Email     6:52:34       government   the state     is       important   the government     The       only   financial plan     a       the   of the     the       Spending   and other     make       and   consequences for     economic       the   year for     of       also   10 tools     help       fiscal   accurately as     make       The   not only     states       Columbia   across regional     divides       the   and accompanying     should       summary   the budget's     future       enough   are need     sure