Acca Paper

Strategic Financial Management PART 3 WEDNESDAY 15 celestial latitude cc4 QUESTION PAPER Time allowed 3 hours This composing is split into two sections voice A some(prenominal) questions are irresponsible and must(prenominal) be answered TWO questions altogether to be answered Section B Formulae sheet, present value, annuity and sample normal distribution tables are on pages 8, 9, 10 and 11 Do not open this paper until instructed by the executive program This question paper must not be remove from the examination hall The Association of Chartered show Accountants constitution 3.7 Section A BOTH questions are compulsory and MUST be attempted 1 (a) Discuss the merits and electric electric potential problems of using each of the weighted average cost of transcendent and adjusted present value to aid the evaluation of proposed great(p) investments. (8 marks) (b) Trosoft pte ltd is a Singapore based company specialising in the study of business enterprise software. The companys managers believe that its future ripening potential in the software sector is limited, and are considering diversifying into former(a) activities. One mite is Internet auctions, and a member of the precaution team has produced the following draft financial proposal.

Internet auctions realise S$000 0 1 4,300 500 680 110 1,290 (1,290) 316 2,700 cd (4,074) 1,210 1,215 1,460 400 85 420 500 280 5,570 (1,270) 311 Year Auction fees 2 6,620 1,850 1,910 1,520 550 90 two hundred 300 290 6,710 (90) 22 3 8,100 1,920 2,230 1,680 600 95 two hundred 200 300 7,225 875 (214) 4 8,200 2,125 2,420 1,730 650 100 200 310 7,535 665 (163) Outflo ws: IT alimony be Telephone Wages Salaries! Allocated head office viewgraph merchandising Royalty payments for use of technology Market look for rental of premises Total outflows Profit before levy revenue Other outflows: IT infrastructure Working capital electronic profit flows 24 (983) 24 (92) 25 636 26 476 Additional information: (i) All data...If you want to get a full essay, rag it on our website: OrderEssay.net

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