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Charles Sturt University Subject Outline ACC XXXXXXXXXXS I-9 February 2018-Version 1 Page of 1 22 ACC515 - Accounting & Finance Session 1 2018 Faculty of Business, Justice and Behavioural Sciences...

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Charles Sturt University Subject Outline
ACC XXXXXXXXXXS I-9 Fe
uary 2018-Version 1 Page of 1 22
ACC515 - Accounting & Finance
Session 1 2018
Faculty of Business, Justice and Behavioural Sciences
School of Accounting and Finance
Internal Mode
Welcome to a new session of study at Charles Sturt University. Please refer to the University’s
(http:
student.csu.edu.au/study/acknowledgement-of-country).Acknowledgement of Country
Subject Coordinator Humayun Murshed
Email XXXXXXXXXX
Phone XXXXXXXXXX
Campus Other
Building/Room number To be advised.
Consultation procedures
Ruhina Karim Lecturer:
(mailto: XXXXXXXXXX) Email: XXXXXXXXXX
o

Deviga VengedasalamLecturer:
(mailto: XXXXXXXXXX) Email: XXXXXXXXXX

The best way to contact your lecturer is via email if you have any questions concerning the contents
and teaching of this subject. However, you should consider if your question is already addressed
elsewhere (e.g. Subject outline, Announcements and within Interact2 site) and if you areiLearn
contacting the most appropriate person.
In order to receive responses to your email on time ensure that you address the issueEmail Etiquette:
meeting the basic requirements of . You should include your professional communication ID
to enable the recipient tonumber, full name, subject code and type of query in the heade
subject
ead and identify who has sent the email. This will also avoid your email being treated as SPAM.
Further guidance on composing is available at: an academic query email
https:
interact2.csu.edu.au/webapps
lackboard/content/listContentEditable.jsp?content_id=_912995_1&course_id=_9258_1&mode=reset
If you cannot contact your Subject Coordinator, please contact your teaching team using the contact
details and consultation procedures provided on your Interact2 subject site.
What is your subject about? A
ief overview
This subject integrates the study of the accounting and finance functions of the firm in the context of a
global financial institutional environment. The subject examines the objectives of corporate finance
and develops specific student competencies pertinent to corporate treasury management and
institutional finance.
Learning outcomes
On successful completion of this subject, you should:
e able to evaluate and explain the congruence of accounting, finance and treasury functions;
e able to explain and critique the objectives of financial management in contemporary
organisations;
http:
student.csu.edu.au/study/acknowledgement-of-country
https:
interact2.csu.edu.au/webapps
lackboard/content/listContentEditable.jsp?content_id=_912995_1&course_id=_9258_1&mode=reset
https:
interact2.csu.edu.au/webapps
lackboard/content/listContentEditable.jsp?content_id=_912995_1&course_id=_9258_1&mode=reset
Charles Sturt University Subject Outline
ACC XXXXXXXXXXS I-9 Fe
uary 2018-Version 1 Page of 2 22
e able to critically evaluate mainstream financial theory and concepts;
e able to discuss and evaluate ethical considerations in financial dealings;
e able to demonstrate appropriate communication skills in the context of corporate finance;
and
e able to demonstrate specific technical competencies and skills in utilising quantitative
techniques in financial analysis.
Pass Requirements
You must obtain at least 50% in both the examination and the total mark in order to pass this subject.
You must pass the exam to pass the subject.
To be eligible for the grade AA or AE you must have submitted all assessment items in the subject,
including the final exam. If you chose not to complete an assessment item or do not sit the final exam
then you will not be granted an AA or AE grade.
Key Subjects
Passing a key subject is one of the indicators of satisfactory academic progress through your course.
You must pass the key subjects in your course at no more than two attempts. The first time you fail a
key subject you will be 'at risk' of exclusion; if you fail a second time you will be excluded from the
course.
The (https:
policy.csu.edu.au/view.cu
ent.php?id=00250) sets out theAcademic Progress Policy
equirements and procedures for satisfactory academic progress, for the exclusion of students who fail
to progress satisfactorily and for the termination of enrolment for students who fail to complete in the
maximum allowed time.
Assumed knowledge
Academic integrity means acting with honesty, fairness and responsibility, and involves observing and
maintaining ethical standards in all aspects of academic work. This subject assumes that you
understand what constitutes plagiarism, cheating and collusion. If you are a new student we expect you
to complete the modules called Academic Integrity at CSU
(https:
interact2.csu.edu.au/webapps
lackboard/execute/courseMain?course_id=_16412_1&task=true&src=).
Prescribed Text
Students must have access to a copy of the prescribed textbook.
Titman, S., et al XXXXXXXXXXFinancial Management 7th edn. Pearson Australia
The textbooks required for each of your enrolled subjects can also be found via the Student Portal
(http:
student.csu.edu.au/study/study-essentials/textbooks) page.Textbooks
Subject and Assessment Schedule
Schedule
In each week you are required to complete the following activities for study of a topic:
- Study the learning objectives, overview and the material on the Interact 2 site,
- Read the required chapte
s from the text and any other required readings listed at the start of the topic,
- Attend the weekly lecture/tutorial
- Prepare a set of topic notes by answering the review questions,
- Test your knowledge on the topic by taking the online quiz.
https:
policy.csu.edu.au/view.cu
ent.php?id=00250
https:
interact2.csu.edu.au/webapps
lackboard/execute/courseMain?course_id=_16412_1&task=true&src=
http:
student.csu.edu.au/study/study-essentials/textbooks
Charles Sturt University Subject Outline
ACC XXXXXXXXXXS I-9 Fe
uary 2018-Version 1 Page of 3 22
Session
Week
Week
Commencing
Topics Readings/Activities
XXXXXXXXXXFe
uary 1. Introduction to financial management
and the Australian taxation system.
2. Financial markets.
Chapters 1, 2 & 3
XXXXXXXXXXMarch 3. Financial mathematics Chapters 5 & 6
XXXXXXXXXXMarch 4. Introduction to risk and rates of return Chapters 7 & 8, prepare for A1
Assignment 1 online test due 19 March
2018

XXXXXXXXXXMarch 5. Valuation of bonds and shares Chapters 9 & 10. work on A2
XXXXXXXXXXMarch 6. Capital budgeting concepts and
methods.
7. Issues in capital budgeting.
Chapters 11 & 12, work on A2
XXXXXXXXXXApril 8. Other approaches to evaluating risk in
project evaluation.
9. Cost of capital
Chapters 13 & 14
Assignment 2 due 8 April 2018
XXXXXXXXXXApril Mid Session Break Work on A3
XXXXXXXXXXApril Mid Session Break Work on A3
XXXXXXXXXXApril 10. Credit management and short-term
financing.
Chapter 18
XXXXXXXXXXApril 11. Long-term debt finance Refer eReserve, work on A3
XXXXXXXXXXMay 12. Shares & conertible securities Refer eReserve, finalise A3
Assessment 3 due 9 May 2018
XXXXXXXXXXMay 13. Capital structure
14. Dividend policy
Chapters 15 & 16
XXXXXXXXXXMay 15. International business finance Chapter 19
XXXXXXXXXXMay Revision
XXXXXXXXXXJune Exam Week 1
XXXXXXXXXXJune Exam Week 2
This study schedule has been devised to assist in your planning during the session, and is intended as
a guide only.
Please see below Additional/Replacement Class Requirements for this session: Classes running on the
following Public Holidays should have a replacement class:
- Friday 30th March 2018 (Good Friday)
- Monday 02nd April 2018 (Easter Monday)
- Wednesday 25th April 2018 (ANZAC Day)
Charles Sturt University Subject Outline
ACC XXXXXXXXXXS I-9 Fe
uary 2018-Version 1 Page of 4 22
Subject Content
Information regarding the subject’s content is outlined above in the Schedule
Subject Delivery
Class/tutorial times and location
If you are enrolled in an internal offering of this subject, your class times can be found at Timetable @
(http:
timetable.csu.edu.au). If you are enrolled in the online offering of the subject, thisCSU
timetable will not apply. Find out how to use Timetable @ CSU via the Student Portal Class
(http:
student.csu.edu.au/study/study-essentials/timetable) page.Timetable
Learning, teaching and support strategies
Your subject materials are available on the Interact site under the Topics link in the left hand side
menu. You also need your textbook. The Topics (in Interact2 > Topics) for this subject have been
written specifically to guide you through the sections (and questions) of the prescribed textbook
elevant to each topic.
I suggest that for each topic you read the learning objectives carefully, read the overview and have a
quick skim of the relevant chapters in the text and lecture Power Points (they will be available in
Interact2 > Resources). This will make it easier to understand concepts that I’ll discuss in class and
you will be able to have meaningful engagement in class.
After class read the material and watch the videos in Topics in interact2. Once you have got a feel fo
what the topic is about you should try to make a good set of notes under each of the topic review
questions in that topic. You can do this by going through lecture PPTs, your own notes taken during
class, re-reading the material and re-watching the videos in interact 2 and consulting the text again in a
more considered way. These topic review questions have been designed to give you focus in the topic,
so it really helps to prepare a useful set of answers to them. Once you feel ready you can test yourself
y taking the online quiz in the topic – there are no marks recorded and you can do each quiz as many
times as you like.
In this subject there are many opportunities for you to engage with the lecturers, with other students
and with the subject. There will be weekly face to face classes throughout the session where content
issues and assessment items will be discussed. Become familiar with the range of materials on you
Interact2 subject site. Engaging with your fellow students through the Interact2 site has many
advantages.
Make sure you regularly (at least 3 times per week) check the Interact site for discussion board
(forum) postings, announcements, topic information and other resources vital to your success in this
subject. Use the subject schedule to plan your studies over the session.
To ensure that you are engaged with the subject from the start of the session, I will be making sure that
you are actively engaged in accessing the learning materials in the first couple of topics. You also have
an early Assessment 1. If you don’t access the materials, do not complete Assessment 1 or do not
attend classes regularly I may contact you by email to find out if there are any issue that I can help you
with.
Academic learning support
Information on effective time management is available on the CSU Learning Support website via the
following link: http:
student.csu.edu.au
Visit the learning support website for advice about assignment preparation, academic reading and
note-taking, referencing, and preparing for exams at: http:
student.csu.edu.au/study
The Study Centres also
Answered Same Day May 05, 2020 ACC100

Solution

Shakeel answered on May 09 2020
127 Votes
PART A
    
    Year 0
    year 1
    Year 2
    Year 3
    Year 4
    Year 5
    Year 6
    Year 7
    Year 8
    Year 9
    Year 10
    Initial investment
    ($33,250,000)
    
    
    
    
    
    
    
    
    
    
    Sales
    
    $30,000,000
    $33,000,000
    $36,300,000
    $39,930,000
    $43,923,000
    $48,315,300
    $53,146,830
    $58,461,513
    $64,307,664
    $70,738,431
    Margin after conversion (MAC) @ 30%
    
    $9,000,000
    $9,900,000
    $10,890,000
    $11,979,000
    $13,176,900
    $14,494,590
    $15,944,049
    $17,538,454
    $19,292,299
    $21,221,529
    Less: Depreciation per yea
    
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    Profit before tax (PBT)
    
    $5,930,000
    $6,830,000
    $7,820,000
    $8,909,000
    $10,106,900
    $11,424,590
    $12,874,049
    $14,468,454
    $16,222,299
    $18,151,529
    Tax @ 30%
    
    $1,779,000
    $2,049,000
    $2,346,000
    $2,672,700
    $3,032,070
    $3,427,377
    $3,862,215
    $4,340,536
    $4,866,690
    $5,445,459
    Profit after tax (PAT)
    
    $4,151,000
    $4,781,000
    $5,474,000
    $6,236,300
    $7,074,830
    $7,997,213
    $9,011,834
    $10,127,918
    $11,355,610
    $12,706,070
    Add: Depreciation
    
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    $3,070,000
    Add: Incentive in the form of rebate
    
    $500,000
    $500,000
    $500,000
    $500,000
    $500,000
    $500,000
    $500,000
    $500,000
    $500,000
    $500,000
    Net cash flow
    ($33,250,000)
    $7,721,000
    $8,351,000
    $9,044,000
    $9,806,300
    $10,644,830
    $11,567,213
    $12,581,834
    $13,697,918
    $14,925,610
    $16,276,070
    PVIF @ 22%
    1
    0.8197
    0.6719
    0.5507
    0.4514
    0.3700
    0.3033
    0.2486
    0.2038
    0.1670
    0.1369
    PV of cash flow @ 22%
    ($33,250,000)
    $6,328,689
    $5,610,723
    $4,980,593
    $4,426,555
    $3,938,579
    $3,508,082
    $3,127,700
    $2,791,103
    $2,492,835
    $2,228,185
    
    Year 0
    year 1
    Year 2
    Year 3
    Year 4
    Year 5
    Year 6
    Year 7
    Year 8
    Year 9
    Year 10
    After tax cash flows
    ($33,250,000)
    $4,151,000
    $4,781,000
    $5,474,000
    $6,236,300
    $7,074,830
    $7,997,213
    $9,011,834
    $10,127,918
    $11,355,610
    $12,706,070
NPV = ($33,250,000) + $6,328,689 + $5,610,723 + $4,980,593 + $4,426,555 + $3,938,579 + $3,508,082 + $3,127,700 + $2,791,103 + $2,492,835 + $2,228,185
= $6,183,045
Profitability index (PI) = ($6,328,689 + $5,610,723 + $4,980,593 + $4,426,555 + $3,938,579 + $3,508,082 + $3,127,700 + $2,791,103 + $2,492,835 +
$2,228,185) / $33,250,000
= $39,433,045 / 33,250,000 = 1.19
    Cumulative net cash flow
    ($33,250,000)
    ($25,529,000)
    ($17,178,000)
    ($8,134,000)
    $1,672,300
    $12,317,130
    $23,884,343
    $36,466,177
    $50,164,095
    $65,089,705
    $81,365,775
    
Payback period = 3 + 8,134,000 / 9,806,300
= 3.83 years.
What recommendation would you make regarding the projects? Discuss any further information that you may require to help you make the accept
eject decision about either of these projects (5 marks)
NPV is positive, therefore project should be accepted. Profitability Index (PI) is larger than 1, thus project should be accepted. The payback period is less than the useful life of the project i.e. 10 years. Thus, it also suggests that project should be accepted.
The other relevant information that might be helpful for acceptance
ejection of project are as follows:
· Opportunity cost if any
· Expected inflation or interest rate so the discounting factor may better be anticipated for future period.
· Competitor’s sales and marketing strategy so expected cash flows are better anticipated in competitive environment.
· Any other relevant information pertaining to fixed costs or initial investment for project.
Define ‘product cannibalisation’ in capital budgeting decisions and address Nathan’s concerns that it should be considered (5 marks).
Product cannibalization means introduction of more than one product in the market by the same firm and those...
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