Please answer the following questions and submit on or before the due date noted above. 1. Stanton Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $490,000, would have a useful life of 9 years, zero salvage value, and would result in net annual cash flows of $90,000 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $510.000, will have a useful life of 11 years, and wil produce net annual cash flows of $77,000 per year Required 10 marks) Evaluate the success of the project. Assume a discount rate of 10% 2 Sam Stanton is on the capital budgeting committee for his company, Canton Tile Ed Rhodes is an engineer for the firm. Ed expresses his disappointment to Sam that a project that was given to him to review before submission looks extremely good on paper. I really hoped that the cost projections wouldn't pan out," he tells his friend. The technology used in this is ple in the sky kind of stuff. There are a hundred things that could go wrong. But the figures are very convincing. I haven't sent it on yet, though I probably should "You can keep it if it's really that bad,' assures Sam. "Anyway, you can probably get it shot out of the water pretty easily, and not have the guy who submitted it mad at you for not turning it in Just fix the numbers. If you figure, for instance, that a cost is only 50% likely to be that low, then double at. We do it all the time, informally. Best of all, the rank and file don't get to come to those sessions. Your engineering genius need never know. He'll just think someone else's project was even better than this." Required (6 marks) 1. Who are the stakeholders in this situation? 2. Is it ethical to adjust the figures to compensate for risk and change the proposal before submitting it? Explain. 3. Cody Co developed its annual manufacturing overhead budget for its master budget for 2016 as follows: Expected annual operating capacity 120,000 Direct Labor Hours Variable overhead costs Indirect labor $600,000 Indirect materials 120,000 Factory supplies 60,000 Total variable 780.000 Fixed overhead costs Depreciation 240,000 Supervision 120,000 Property taxes 96.000 Total fixed 456.000 Total costs $1.236.000 The relevant range for monthly activity is expected to be between 8.000 and 12,000 direct labor hours. Required (& marks) Prepare a flexible budget for a monthly activity level of 8,000 and 9,000 direct labor hours 4. What are the four perspectives used in the balanced Scorecard? Discuss the nature of each, and how the perspectives are linked. (6 marks)