There Are Two Activities of This Assignment.: A 2 M A (FIN704) F 2017
There Are Two Activities of This Assignment.: A 2 M A (FIN704) F 2017
Task 02: There will be Presentation and Question & Answer session of
submitted file. Presentation and Question & Answer session will be conducted
through Skype and presentation date, time is mentioned in Excel Sheet.
Required
Carefully read the research article titled a) “A research article titled “An
empirical investigation of the Importance of Cost Plus pricing” and prepare its
summary by following the guidelines written in the other article “How to
Summarize the Research Article”.
PART B
Question 01
Solve the illustration given on slide 01 of lecture 23 with purchase cost of Rs. 20,000
and all other information will remain same. Requirement of the illustration is given on
slide 02.
Slide of Lecture 23 is also enclosed in the folder.
Question 02
a. Re- calculate discounted cash flow at cost of capital 15% per annum with the
help of question given on slide 05 of lecture 23 and all other information will
remain same.
b. In continuation of part a: calculate Net Present Value and Internal Rate of
Return with the help of new discounted cash flows.
c. How discounted cash flows, Net Present Value and Internal Rate of Return will be
affected cost of capital 15% per annum (compare new calculation with the
solution of question given on slide 05).
Question 04
Do you think that Economic Value Added (EVA) is better performance measure than
accounting measures? Support your answer on reasonable grounds.
Question 05
Use question data given on slide 08 of lecture 29; Calculate budgeted profit/ (loss) for
Division Y if the transfer price is set at marginal cost.
In order to set the external selling price the company uses a 40% mark up on total
standard cost.
Slides of Lecture 29 is also enclosed in the folder.