Skip to content

ACC501 Assignment 1 Solution Fall 2022

After attempting this assignment you will be able to understand the different capital budgeting techniques. Calculate projected net cash flows by considering the effect of depreciation and taxes. Evaluate any proposed project by using different capital budgeting techniques. Derive inferences after critical analysis regarding the acceptance rejections of the project.

Mr. Ali wants to establish a business of manufacturing plastic PVC pipes. He estimates a start-up cost of business with machinery of worth Rs. 20 million. He further projects that the revenue before tax and depreciation from the business will be Rs. 5 million for the first  year and it will keep on growing at a rate of 5 percent annually up to year 6.

ACC501 Assignment 1 Solution Fall 2022, acc501 assignment 1 solution, acc501 assignment 1 solution 2022, acc501 assignment solution 2022, acc501 assignment solution fall 2022.

The machinery is fully depreciated under the straight line method till the end of year 6. Cost of capital is 10percent while the tax rate is 30 percent. As per an estimate, the machinery dismantling and the site restoration would require an outlay of Rs. 2 million; while the machinery would not be able to fetch any sale price. Being a financial consultant of Mr. Ali, you have to conduct a feasibility analysis for his project. You have to suggest Mr. Ali about the viability of the project after performing different Capital Budgeting techniques.

24 hours extra / grace period after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.

As you know that Post Mid-Term semester activities have started and load shedding problem is also prevailing in our country. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs.

ACC501 Assignment 1 Solution Fall 2022, acc501 assignment 1 solution, acc501 assignment 1 solution 2022, acc501 assignment solution 2022, acc501 assignment solution fall 2022.

error: Content is protected !!
Ads Blocker Image Powered by Code Help Pro

Ads Blocker Detected!!!

We have detected that you are using extensions to block ads. Kindly Disable Your Adblocker Extensions