Quiz 9

Question1: 1. Determine the Payback Period and write a conclusion for the two projects E and R based on the information provided in the table below: Year Cash Flow (E) Cash Flow (R) 0 -3700 -2900 1 400 500 2 500 600 3 700 700 4 800 900 5 1000 1100 6 1200 1300 Question2: 1. Discuss the critical importance of work schedule in project management.2. Discuss the contribution of cost estimation in the completion of successful project.3. A firm is planning a project which consists of the following ten jobs and precedence relations are identified with their node numbers: Jobs (i-j) 1-2 1-3 2-3 2-4 2-5 3-5 4-7 5-6 6-7 7-8 Durations (days) 9 5 12 7 8 11 10 3 4 6 a. Draw an arrow diagram representing the project.b. Determine the critical pathc. What is the duration of the project?   Question3: A company is planning to purchase a new machine to expand the range of its products.…

3.1 Explain the importance of developing a baseline budget for a project                       3.2 Describe the process of project budgeting                                      3.3 Discuss the importance of tracking actual and committed costs once a project has commenced

help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working

2. Match each of the following terms with the appropriate definition. The time expected to recover the cash initially invested in a project. A minimum acceptable rate of return on a potential investment. 1. Discounting A return on investment which results in a zero net present value. 2. Net Present Value A comparison of the cost of 3. Capital Budgeting an investment to its projected cash flows at a single point in time. 4. Accounting Rate of Return 5. Net Cash Flow A capital budgeting method focused on the rate of return on a project's average investment. 6. Internal Rate of Return 7. Payback Period The process of restating future cash flows in terms 8. Hurdle Rate of present time value. Cash inflows minus cash outflows for the period. A process of analyzing alternative long-term investments. >

Statement 1: Capital Budgeting is a decision-making tool Statement 2: In the capital budgeting phase, all the cash inflows, outflows, and savings (such as tax savings resulting from the depreciation of the purchased assets) are evaluated.  Select the correct response: a. Only statement 1 is correct b. Only statement 2 is correct.  c. Both statements are correct d. Both statements are incorrect

Item 1 Which of the following is a budget used to project cash flow and likely cash shortfalls and/or surpluses? Multiple Choice Financing budget Master budget Rolling budget Operational budget Capital budget

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A cash flow budget can be used to   A.    estimate when and how much money will need to be borrowed                   during the year     B.    estimate when and how much debt can be repaid during the year   C.    estimate when excess cash may be available so plans can be made to           invest it    D.   all of the above

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Provide a letter of advice:• discuss the key results of the income statement and cash budget• make one suggestion on how the client could improve the financial success of the cost management strategy• identify and discuss one non-financial factor that might affect the client’s decision to proceed with the chosen proposal• clearly state whether the client should proceed with the chosen proposal and why

A) Enter True or False    1.   ________   An important part of the planning process is the creation of a budget.   2.   ________   Operating budgets focus on the financial resources needed to support operations including cash receipts and disbursements, capital expenditures and financing.   3.   ________   Budgets can also create a “use-it-or-lose-it” mentality that encourages managers to spend their entire budgets to avoid a reduction in resources in the next budget period.   4.   ________   The starting point of the planning process is management’s strategic plan or vision of what they want the organization to achieve over the long term.   5.   ________   A short-term objective is a specific goal that managers want to achieve in more than a year to reach their long-term goals.   6.   ________   Planning is the forward-looking phase of the planning and control process that involves setting long-term objectives and defining short-term…

of 31 Which type of budget requires a facility manager to perform an in-depth analysis of all line items and meticulously justify all expenditures? Operational budget Capital budget Zero-based budget Incremental budget

1. Concepts used in cash flow estimation and risk analysis You can come across different situations in your life where the concepts from capital budgeting will help you in evaluating the situation and making calculated decisions. Consider the following situation: The following table contains five definitions or concepts. Identify the term that best corresponds to the concept or definition given. Concept or Definition Term The specific cash flows that should be considered in a capital budgeting decision      A cost that has been incurred and may be related to a project but should not be part of the decision to accept or reject a project      The cash flows that the asset or project is expected to generate over its life      The effects on other parts of the firm      The cost of not choosing another mutually exclusive project by accepting a particular project        A successful sushi chain in Hong Kong spent $500,000 to conduct a study on whether to open…

Define the following with formulaes if possible: Please write full definations. 1. Cash Receipt Budget 2. Short Term Financial Needs 3.Budgeted Income Statement 4. Budgeted Balance Sheet

The project budgeting process involves two steps. The first step is to determine the total budgeted cost (TBC), which is the aggregate amount of the estimated costs of all the specific activities to perform and complete a work package or the project. Review the below Budgeted Cost table by period per activity and calculate the cumulative total cost for the following days: a) b) c) d) e) Day: 2 Day: 4 Day: 7 Day: 9 Day: 12 The Independent Institute of Education (Pty) Ltd 2022 21; 22; 23 1 Activity 1 2 Activity 2 Activity 3 Activity 4 Activity 5 22 4 5 32 7~ Days 4 5 6 2 2 2 4 3 3 5 5 5 5 5 Amounts are in thousands of Rands. 7 2 82 9 10 4 6 10 10 Page 4 of 6 11 12 3 2 2022

1. Which of the following is NOT an objective of the budgeting process? a. O a. To communicate management's plans throughout the entire organization O D.To provide a means of allocating resources to those parts of the organization where they can be used most effectively С. To ensure that the company continues to grow OTo uncover potential bottlenecks before they occur

The "Cash Budget"   a)is used to predict future surpluses & shortages of cash, allowing the organization to plan ahead for such occurrences   b)differs from the Master Budget due to the accrual concept   c)uses the Master & Capital budgets for input   d)all of the listed answers are correct

Zero-based budgeting refers to: a. Budgeting from the ground up as though the budget process were being initiated for the first time b. Using prior year’s budget as a bas year and adjusting it based on the experiences of the prior year and the expectations for the coming year c. Budgeting for cash inflows and outflows to time investments and borrowings in a way to maintain bank account with a minimum balance d. Developing budgeted costs from clear-cut measured relationships between inputs and outputs Clear my choice

What is the second step of capital budgeting? a. Gathering the money for the investment b. Identifying potential projects c. Getting the accountant involved d. All of the above

The budgeted cost for all activities in a project with the help of earned value method is defined by: Group of answer choices Actual cost Budget for completion Budget at completion Estimate at completion

49. A cash budget can be prepared only after Group of answer choices a. determining that enough cash is available to meet dividend distributable. b. the manufacturing overhead costs budget is prepared c. the pro forma statement of cash flows is prepared d. obtaining a commitment from its bank that cash will be available when necessary

Case 1: Include or exclude? Indicate whether the following transactions should be included or excluded from the cash budget—no need foran explanation.1. Purchase of new equipment2. Payment of income tax3. Write-off of bad debts4. Depreciation of equipment5. Repairs on equipment6. Payment to supplier

In calculating Net Present Value (NPV), which one of the following is not an example of a relevant cashflow: A Incremental Operating Costs B Initial investment (including installation costs) C Depreciation D Increased working capital (current assets (cash, receivable and inventories less current liabilities) Question 2 Which of the following best describes a ‘basic standard’ with respect to costs in a budgeting exercise? A A standard which assumes an efficient level of operation, but which includes allowances for factors such as normal loss, waste and machine downtime B A standard which is kept unchanged over a period of time C A standard which is based on current price levels D A standard set at an ideal level, which makes no allowance for normal losses, waste and machine downtime Question 3 Which of the following statements about budgets and standards are true? A Standards can only be achieved under ideal conditions B Budgets can be used in situation where output cannot…