ACC 543: DQs: Accounting Rate of Return Method.

#Term 1 Unit 7 Discussions: Accounting Rate of Return Method

What are the numerous methods of comparison concerning capital investment decision-making? Discuss the payback method and the accounting rate of return method and provide a unique example of each one.

Please authorized sources

#Wk 3, ACC 543: DQ

#APA format

175 – 265 words

Cite at least one (1) peer-reviewed reference

#Respond to the following:

 Staffing

Switching gears, a little.

We are in a different model of employment these days. In part, the Affordable Care Act is in response to and a cause of these changes. All industries are looking at employment from new perspectives and still learning what works best. The cost of benefits, training, etcetera has reached levels where businesses must do this to remain competitive. While it is painful right now, the approach to health care is an example of how the change can be good in the long run. In the end, employers will not offer health care but will pay enough that employees can buy their own from the market. This makes temporary employment better for folks and lets the market place people in environments where they are most productive and happy. Right now, medical insurance is actually handcuffing. In research, we call this continuance commitment.

How will this change cash flow models?

Ibanga Umanah. (2019, April 29). Gigs are not the future of work. – Brave – Medium. Medium; Brave. https://medium.com/braveventurelabs/gigs-are-not-the-future-of-work-733fa78e5f8f

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#Wk 2, ACC 543: DR 2

#APA format

175 – 265 words

Cite at least one (1) peer-reviewed reference

Respond to the following:

Required Rate

I started my CPA Firm life by calculating the Weighted Average Cost of Capital (WACC). I learned very quickly that investors (equity) expect a higher return than most banks. The long formula for WACC is the cost of debt multiplied by the percentage of debt multiplied by one minus the tax rate (since interest is tax deductible) and the cost of equity multiplied by the percentage of equity. This total is the firm’s hurdle rate.

Why is this the rate that must be earned?

Corporate Finance Institute. (2020, February 29). WACC. Corporate Finance Institute; Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/knowledge/finance/what-is-wacc-formula/

#Wk 2, ACC 543: DR 1

#Net Present Value and Internal Rate of Return

For this assignment, refer to the scenario located in “Problems – Series A” section 10-19A of Ch. 10, “Planning for Capital Investments” of Fundamental Managerial Accounting Concepts. This scenario puts you at the task of a Senior Accountant for Donovan Enterprises to identify the preferred method and best investment opportunity for the company.

Read the scenario in the textbook and complete the activity below.

Use Microsoft® Excel®—showing all work and formulas—to compute the following:

• Compute the net present value of each project. Round your computations to 2 decimal points.
• Compute the approximate internal rate of return for each project. Round your rates to 6 decimal points

Create a PowerPoint® presentation showing the comparison of the net present value approach with the internal rate of return approach calculated above. Complete the following in your presentation:

• Analyze the results of the net present value calculations and the significance of these results, supported with examples.
• Determine which project should be adopted based on the net present value approach and provide a rationale for your decision.
• Analyze the results of the internal rate of return calculation and the significance of these results, supported with examples.
• Determine which project should be adopted based on the internal rate of return approach and provide a rationale for your decision.
• Determine the preferred method in the given circumstances and provide reasoning and details to support the method selected.
• Synthesize results of analyses and computations to determine the best investment opportunity to recommend to the president of Donovan Enterprises.

Cite references to support your assignment.