Accounting help required: Can I learn in a week?

Start by talking about the payback method, discussing the pros and cons of using it (the main con being it doesn't take into account the time value of money). Then go on to explain how the time value of money works and how other project appraisal methods incorporate it.
 
kenmare said:
Anyone got a hint as to where to start?
Click to expand...

I don't know your course, but I suspect like most accounting courses they have gone through all capital budgeting methods and gone through the pros and cons.

http://en.wikipedia.org/wiki/Capital_budgeting

As you acn see the first paragraph has links for 6 methods for assessing capital projects.

Get a textbook and you can learn all this in a few hours after going through a few worked examples.
 
Please tell me you're not doing an economics/accounting based degree and this is simply a required module to go along with your <insert some completely different other degree here>. You can learn that in about two hours.
 
This is simply a module that I haven't been to since I started uni. Yes I'm a ********, yes I need to pass this to carry on, and yes this Easter is going to be spent catching up.

Thanks for the links/help people, appreciate it greatly. :)
 
This link is a bit more instructional..
http://www.ehow.com/how_2187130_calculate-net-present-value-npv.html

Basically, you want to see which option gives you the most money at the end, after taking into account the effect of inflation,cost of financing etc on each year of the related cash flow.

Guys correct me if I'm wrong, but that is a discounted cash flow. A non-discounted cash flow should just be a sum of the income/expense of all the years for that option.
I did this last year so I should be able to help more, but I tend to discard bits of memory which don't seem useful at the time :(
 
mistercrabb said:
This link is a bit more instructional..
http://www.ehow.com/how_2187130_calculate-net-present-value-npv.html

Basically, you want to see which option gives you the most money at the end, after taking into account the effect of inflation,cost of financing etc on each year of the related cash flow.

Guys correct me if I'm wrong, but that is a discounted cash flow. A non-discounted cash flow should just be a sum of the income/expense of all the years for that option.
I did this last year so I should be able to help more, but I tend to discard bits of memory which don't seem useful at the time :(
Click to expand...
Great link thanks, will study now.
 
Okay, I've worked out how to do the formula's using excel etc.

Question now is, how do I change these excel values into a 2,000 word report lol.
 
I would use this basic layout (modified from the AAT project report layout):

1. Executive summary - brief summary of report (for management to read)
2. Methodology - How you got the info you based the report on, what you did (dicounted cash flow etc).
3. Description of situation - blahblahblah need a machine which option is cheapest save money etc
4. Findings - results of your cash flow workings (and the discounted one) laid out nicely. Maybe explain how you worked it out here?
5. Recommendations - Recommend which option they should take, and why.


Remember you have to explain how you worked it out, and explain that you used 2 techniques - discounted cash flow and non discounted cash flow. Explain why discounted cash flow is better (google :))

And anything else mentioned in the question.
 
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