HND大三会计金融国贸财政预算答案参考Outcome4.docxVIP

Preparing Financial Forecasts (F84R 35) outcome34 PAGE 1 Preparing Financial Forecasts – Outcome 4 Report to Management Prepared by: accountant Date: Introduction You asked me to write a report to the management and then evaluate this project. The following are the methods of return rate and accounting return rate, then evaluate the feasibility of this project, and finally summarize this project and put forward Suggestions. Key Assumptions Assume a given market rate of return is fixed to avoid unnecessary calculations.There is no uncertainty and there is no inflation.Reasonable estimate of expected return on investment, taking into account most factors.Unlimited funds can be raised at competitive prices, which means the total cost of the project can be paid at the outset. The calculation and analysis of Payback period/Accounting rate of return/Net present value/Internal rate of return Calculations Analysis Payback period : The payback period is 3.93 years.I think Matteck PLC can take on this project because the payback period of 3.93 is less than the target payback period Internal rate of return : The internal rate of return is 9.33%.I suggest Matteck PLC reject this project, the company does not get profit from this project, because the 9.33% IRR is lower than the 15% capital cost. Recommendations I recommend that companies reject this project because of the internal rate of return approach, which takes into account the time value of money and provides an easier and clearer message.However, since IRR is close to market returns, it is recommended that additional factors be carefully considered.Other additional factors include financial factors and non-financial factors.Financial factors are important to the project.For example, the company will raise enough money to support someones project.While financial factors are an important part of the decision-making process, non-financial factors are also important.The legislative council has an influence on the proj