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Andrew has asked you to prepare an information sheet entitled Management Accounting. The information sheet must include: A completed capital investment appraisal for Andrew's expansion.
Andrew has asked you to prepare an information sheet entitled Management Accounting". The information sheet must include: A completed capital investment appraisal for Andrew's expansion. An interpretation of the capital investment appraisal results. Andrew has provided you with the following predicted cash flow data for two possible options for his expansion - Option A and Option B. Year Option A - Option B Purchase of a Build an new store extension to the existing store 0 (300 000) (100 000) Initial Outlay 1 80 000 20 000 2 80 000 30 000 3 90 000 30 000 4 90 000 50 000 5 100 000 50 000 Andrew's cost of capital is 10% per annum. The extract from the Present Value tables of 1 at 10% Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 0.909 0.826 0.751 0.683 0.621 Andrew has asked you to prepare an information sheet entitled Management Accounting". The information sheet must include: A completed capital investment appraisal for Andrew's expansion. An interpretation of the capital investment appraisal results. Andrew has provided you with the following predicted cash flow data for two possible options for his expansion - Option A and Option B. Year Option A - Option B Purchase of a Build an new store extension to the existing store 0 (300 000) (100 000) Initial Outlay 1 80 000 20 000 2 80 000 30 000 3 90 000 30 000 4 90 000 50 000 5 100 000 50 000 Andrew's cost of capital is 10% per annum. The extract from the Present Value tables of 1 at 10% Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 0.909 0.826 0.751 0.683 0.621
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