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i. The accounting systems that grew up alongside the industrial revolution concentrated on the simplest financial indicators; revenues, costs, and the balance sheet. Does this

i. The accounting systems that grew up alongside the industrial revolution concentrated on the simplest financial indicators; revenues, costs, and the balance sheet. Does this statement sit well with you? Explain your response to this statement. ii. AIBMAG, a country with an expanding demand for electricity services, is considering a major expansion of its rural electrical system. It is also expected that the cost of lines, transformers, and other capital equipment will increase over time. Explain what criterion should be used to decide if and when the project should be undertaken. iii. Explain what the annual debt service coverage ratio (ADSCR) and loan life coverage ratio (LLCR) are. How are these estimated and what are the differences between them? What will you do if the ADSCR are less than one in year 9 and 10 of the 20 years project? iv. Ghana is considering building a new airport. It is planning to appraise the investment in the airport as a separate project from the road, railroad and bus services that are expected to be developed to serve the airport. Explain why you either agree or disagree with this approach for the appraisal of these expenditures. v. How can the banking industry affect the environment through the direct impacts of its internal operations and business processes? [ 3 marks each]

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