You are a qualified Management Consultant of Hoa Sen Group Joint Stock Company. This is the number 1 enterprise in the field of steel sheet production and trading in Vietnam and the leading steel sheet exporter in Southeast Asia. You have been commissioned by three scenarios to advise them on the value of management accounting systems as well as the need for a strategic perspective. Your brief is to produce an initial advisory report which sets out the benefits of management accounting techniques and robust management accounting systems.

You will need to prepare a report which focuses on the following: 1. Referring to Scenario 1, a critical evaluation of a range of accounting techniques for decision making and investment in Hoa Sen Group

Scenario 1 Hoa Sen Group Joint Stock Company is now considering 3 potential investment projects. You are now required to evaluate those three possible capital expenditure projects that can assist the company in choosing the most appropriate one. Because of capital rationing only one project can be accepted Expected Cash flow Project A Project B Project C Investment now (300,000 (380,000) (280,000) Year 1 120,000 40,000 70,000 Year 2 100,000 50,000 50,000 Year 3 150,000 60,000 90,000 Year 4 20,000 180,000 (30,000) Year 5 170,000 120,000 Year 6 100,000 140,000 Year 7 90,000 The company estimates its cost of capital is 8%