Managerial accounting can be a complex job. As you learned in this weeks practice assignment, many different calculations need to be completed to assist an organization with its financial statements.
Write a 250-word response reflecting on your experience making the calculations from the practice assignment. In your reflection, share your thoughts on the activities within this weeks readings. Consider how calculating financial statements will help drive effective business decisions.
Address the following questions within your response:
Which calculations were challenging for you? Why?
Which ratios were difficult to understand?
What will you do differently in the following weeks?
If you did not have any challenges, respond to the following questions:
What prepared you for these calculations?
What advice would you give a classmate who needs assistance?
For this assignment, refer to the scenario located in Problems Series A section 10-19A of Ch. 10, Planning for Capital Investments of Fundamental Managerial Accounting Concepts. This scenario puts you at the task as a Senior Accountant for Donovan Enterprises to identify the preferred method and best investment opportunity for the company.
Read the scenario in the textbook and complete the activity below.
Use Microsoft® Excel®showing all work and formulasto compute the following:
Compute the net present value of each project. Round your computations to 2 decimal points.
Compute the approximate internal rate of return for each project. Round your rates to 6 decimal points
Create a PowerPoint® presentation showing the comparison of the net present value approach with the internal rate of return approach calculated above. Complete the following in your presentation:
Analyze the results of the net present value calculations and the significance of these results, supported with examples.
Determine which project should be adopted based on the net present value approach and provide a rationale for your decision.
Analyze the results of the internal rate of return calculation and the significance of these results, supported with examples.
Determine which project should be adopted based on the internal rate of return approach and provide a rationale for your decision.
Determine the preferred method in the given circumstances and provide reasoning and details to support the method selected.
Synthesize results of analyses and computations to determine the best investment opportunity to recommend to the president of Donovan Enterprises.
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