Section A: Compulsory QUESTION 1: Mr. Kofi Nti is a young graduate who has just qualified and has been admitted into ICA membership. He has inherited GH50,000 in his grandfather's estate and he intends to invest in either of two projects. A consulting firm, Quest and Associates Ltd., provided the following information on the cash flow of the two projects. Project A Project B GH GH Initial outlay 5,000 5,000 Net cash inflow: Year 1 2,600 1.800 Year 2 1,500 2,000 Year 3 800 2,500 Year 4 600 2,800 Year 5 3,000 The initial cash outlay will occur immediately and the net cash inflows will arise at the end of each year. Given that the cost of capital over the five year life span of the project is 12%. You are required to: (a) i) Outline the 2 merits and 2 demerits of the "Pay Back" method of capital investment appraisal (4 Marks) ii) State 2 relative merits and 2 demerits of the net present value (NVP) method of investment appraisal over the pay back method. (4 Marks) iii) Assess the two projects above using: iii. a Pay Back period method. (4 Marks) iii. b Net Present Value (NPV) method. (4 marks) (6) (c) (d) List and explain five significance of management accounting to organisations. (10 marks) List the four major functions of a management accountant. (4 marks) Outline and explain the procedures involved in preparing a budget for a manufacturing company in Ghana. (10 marks)