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 both(prenominal) questions are irresponsible and mustiness be answered TWO questions further to be answered Section B Formulae sheet, present value, annuity and metre normal distribution tables are on pages 8, 9, 10 and 11 Do not open this paper until instructed by the supervisor This question paper must not be take away from the examination hall The Association of Chartered show Accountants motif 3.7 Section A BOTH questions are compulsory and MUST be attempted 1 (a) Discuss the merits and electric latent 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 line of products software. The companys man agers believe that its future ripening potential drop in the software sector is limited, and are considering diversifying into former(a) activities. One touch is Internet auctions, and a member of the precaution team has produced the future(a) 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 cc 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) Outflows: IT alimony be Telephone Wages Sala ries Allocated head office viewgraph mercha! ndising Royalty payments for use of technology Market look for letting of premises Total outflows Profit before levy measure Other outflows: IT infrastructure Working capital electronic vane flows 24 (983) 24 (92) 25 636 26 476 Additional selective information: (i) All data...If you want to get a full essay, append it on our website: OrderEssay.net

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