ACCCB/543 Competency 1 Assessment and Ru
ic
Copyright 2021 by University of Phoenix. All rights reserved.
ACCCB/543 Competency 1 Assessment and Ru
ic
Course Title: Managerial Accounting and Legal Aspects of Business
Competency Assessment Title: Net Present and Internal Rate of Return
Assignment Directions
Review the scenario and complete the activity below. This scenario can also be found in the “Problems – Series A” section 10-19A of Ch. 10,
“Planning for Capital Investments” of Fundamental Managerial Accounting Concepts.
Dwight Donovan, the president of Donovan Enterprises, is considering 2 investment opportunities. Because of limited resources, he will be able to
invest in only one of them.
Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of four years and no salvage
value. Project B supports a training program that will improve the skills of employees operating the cu
ent equipment. Initial cash expenditures for
Project A are $400,000 and for Project B are $160,000. The annual expected cash inflows are $126,000 for Project A and $52,800 for Project B.
Both investments are expected to provide cash flow benefits for the next four years. Donovan Enterprises’ desired rate of return is 8 percent. Your
task, as Senior Accountant, is to use your knowledge of net present value and internal rate of return to identify the prefe
ed method and best
investment opportunity for the company and present your results to Dwight Donovan.
Use Excel®—showing all work and formulas—to compute the following:
• The net present value of each project. Round your computations to 2 decimal points.
• The approximate internal rate of return for each project. Round your rates to 6 decimal points.
Create an 8- to 10-slide presentation showing the comparison of the net present value approach with the internal rate of return approach that you
calculated.
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 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 rationale for your decision.
• Determine the prefe
ed 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 and provide rationale for your recommendation.
• Include detailed speaker notes.
ACCCB/543 Competency 1 Ru
ic
Page 2 of 3
Copyright 2021 by University of Phoenix. All rights reserved.
Competency Assessment Ru
ic
Assignment/Performance
Criteria
Mastery
100%
Meets Expectations
85%
Not Met
0%
1. Computations
(weight 30%)
Showed formulas, formulas were
completely co
ect, showed all
calculation details, and
calculations were completely
co
ect, resulting in completely
accurate interpretations.
Showed formulas, formulas were
partially co
ect, showed some
calculation details and
calculations are partially co
ect
esulting in inaccurate
interpretations.
Showed formulas, formulas were not
co
ect, showed some calculation details
and calculations are not co
ect resulting in
inaccurate interpretations or did not show
formulas or did not show calculation
details.
2. Net Present Analysis
(weight 8%)
Thoroughly analyzed results of
the net present value calculation;
showed the significance of
esults from a creative and
innovative perspective; examples
thoroughly supported the
analysis.
Partially analyzed results of the
net present value calculation;
partially showed the significance
of results; examples mostly
supported analysis.
Na
owly analyzed results of the net
present value calculation; na
owly showed
significance of results; examples minimally
supported analysis or did not analyze the
esults of the net present value calculation;
did not analyze significance of results; did
not include examples to support analysis.
3. Net Present Value
Approach Decision
(weight 8%)
Determined which project should
e adopted based on the new
present value approach and
provided a thorough, creative,
and innovative rationale to
support decision.
Determined which project should
e adopted based on the new
present value approach and
provided a partial rationale to
support decision.
Determined which project should be
adopted based on the new present value
approach and provided a na
ow rationale
to support decision or did not determine
which project should be adopted based on
the new present value approach or did not
provide a rationale to support decision.
4. Internal Rate of Return
Analysis
(weight 8%)
Thoroughly analyzed the results
of the internal rate of return
calculation; showed the
significance of results from a
creative and innovative
perspective; examples
thoroughly supported analysis.
Partially analyzed the results of
the internal rate of return
calculation; partially showed the
significance of results; examples
mostly supported analysis.
Na
owly analyzed results of the internal
ate of return calculation; na
owly showed
the significance of results; examples
partially supported analysis or did not
analyze results of the internal rate of return
calculation; did not analyze significance of
esults; did not provide examples to
support analysis.
ACCCB/543 Competency 1 Ru
ic
Page 3 of 3
Copyright 2021 by University of Phoenix. All rights reserved.
Assignment/Performance
Criteria
Mastery
100%
Meets Expectations
85%
Not Met
0%
5. Internal Rate of Return
Approach Decision
(weight 8%)
Determined which project should
e adopted based on the internal
ate of return approach and
provided a thorough, creative,
and innovative rationale to
support decision.
Determined which project should
e adopted based on the internal
ate of return approach and
provided a partial rationale to
support decision.
Determined which project should be
adopted based on the internal rate of
eturn approach and provided a na
ow
ationale to support decision or did not
determine which project should be adopted
ased on the internal rate of return
approach or did not provide a rationale to
support decision.
6. Prefe
ed Method
Decision
(weight 18%)
Determined the prefe
ed method
for the given circumstances and
provided thorough, creative, and
innovative reasons and details to
support decision.
Determined the prefe
ed method
for the given circumstances and
provided partial reasons and
details to support decision.
Determined prefe
ed method for given
circumstances and provided na
ow
easons and details to support decision or
did not determine prefe
ed method for
given circumstances or did not provide
eason and details to support decision.
7. Best Investment
Opportunity
Recommendation
(weight 20%)
Thoroughly synthesized the
esults of analyses and
computations from a creative and
innovative perspective to
determine the best investment
opportunity to recommend to the
president of Donovan
Enterprises.
Partially synthesized the results
of analyses and computations to
determine the best investment
opportunity to recommend to the
president of Donovan
Enterprises.
Na
owly synthesized the results of
analyses and computations to determine
the best investment opportunity to
ecommend to the president of Donovan
Enterprises or did not synthesize the
esults of analyses and computations to
determine the best investment opportunity
to recommend to the president of Donovan
Enterprises.
Assignment Directions
Competency Assessment Ru
ic
ACCCB/543 Competency 2 Assessment and Ru
ic
Copyright 2021 by University of Phoenix. All rights reserved.
ACCCB/543 Competency 2 Assessment and Ru
ic
Course Title: Managerial Accounting and Legal Aspects of Business
Competency Assessment Title: Flexible Budget
Assignment Directions
Review the scenario and complete the activity below. This scenario can also be found in the “Problems – Series A” section 8-19A of Ch. 8,
“Performance Evaluation “of Fundamentals of Managerial Accounting Concepts.
Use Excel®—showing all work and formulas—to complete the following:
• Prepare a flexible budget.
• Compute the sales volume variance and the variable cost volume variances based on a comparison between the master budget and the
flexible budget.
• Compute flexible budget variances by comparing the flexible budget with the actual results.
Mr. Snow was extremely upset with the budget deficit. He immediately called you, the treasurer, to complain about the budget variance for the
meal cost. He told you that the added dessert caused the meal cost to be $4,810 ($25,110 - $20,300) over budget. He added, “I could expect a
couple hundred dollars one way or the other, but several thousand is totally unacceptable. At the next budget meeting of the budget committee, I
want you to explain what happened.”
Create a 6- to 8-slide presentation for the budget committee meeting showing your findings and recommendations from your computations.
Complete the following in your presentation:
• Summarize the results of the sales volume and variable cost volume variances computations based on the comparison between the
master budget and the flexible budget.
• Summarize the results of the flexible budget variances computations based on the comparison between the flexible budget and the actual
esults.
• Justify the favorable or unfavorable budget variances.
• Since this is a not-for-profit organization, address why anyone should be concerned with meeting the budget.
• Make recommendations for what can be done differently to stay on budget for future luncheons. Provide specific examples to support your
ecommendations.
• Include detailed speaker notes.
ACCCB/543 Competency 2 Ru
ic
Page 2 of 3
Copyright 2021 by University of Phoenix. All rights reserved.
Competency Assessment Ru
ic
Assignment/Performance
Criteria
Mastery
100%
Meets Expectations
85%
Not Met
0%
1. Flexible Budget
(weight 15%)
Created a flexible budget in
Excel, showing all work and
formulas, and all calculations
are co
ect.
Created a flexible budget in
Excel, showing most work
and formulas, and most
calculations are co
ect.
Created a flexible budget in Excel, showing
minimal work and formulas, and some
calculations are co
ect or did not create a flexible
udget.
2. Sales Volume and
Cost Volume Variances
(weight 15%)
In Excel, all components of
the computations of the sales