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 moldiness be answered TWO questions solo to be answered Section B Formulae sheet, present value, annuity and measuring stick 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 distant from the examination hall The Association of Chartered show Accountants wallpaper 3.7 Section A BOTH questions are compulsory and MUST be attempted 1 (a) Discuss the merits and electric capability problems of using each of the weighted average cost of capital 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 bloodline software. The companys man agers believe that its future ripening voltage in the software sector is limited, and are considering diversifying into former(a) activities. One proposal is Internet auctions, and a member of the precaution team has produced the adjacent 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 cc 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 Salaries Allocated head office viewgraph marketing Royalty pa! yments for use of technology Market look for renting of premises Total outflows Profit before levy revenue enhancement Other outflows: IT infrastructure Working capital electronic internet flows 24 (983) 24 (92) 25 636 26 476 Additional entropy: (i) All data...If you want to get a full essay, piece it on our website: OrderEssay.net

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