Case Study 2 – Auditing ACCT3000 (Semester 2, 2019)
You are an Audit Senior currently planning the 30 June 20X9 audit of Technology Limited, an Australian-owned company that produces and exports computer chips to China. At a recent planning meeting with Technology Limited’s senior staff, you obtained the following overview of this year’s operations:
Tight checks by Australian custom officials have delayed several shipments of computer chips. These delays have angered Chinese customers who are threatening to deduct 20% from the amounts owing as compensation for lost production time.
One of Technology Limited’s customers, Blue Chip Limited, is claiming that the latest batch of computer chips it received was found to be faulty. Blue Chip Limited is refusing to pay its account, which is allegedly seven months overdue. Technology Limited has claimed to have launched an investigation into the allegations, but as yet not been able to substantiate them. Technology Limited has suffered significant cash flow problems because another major customer, Creative Limited (Creative), is experiencing financial difficulties. As a result, Creative is taking well over 120 days to pay outstanding amounts, despite Creative’s terms of trade being payment within 30 days. Creative makes up 40 per cent of Technology Limited’s sales and the board has been reluctant to take any action that might adversely affect those sales. Consequently, Technology Limited has had to increase its dependency on its line of credit, and this has caused it to temporarily breach the debt to equity ratio required in its loan covenant with Big Bank Limited.
One of Technology Limited’s major suppliers went bankrupt one month ago, causing major product shortages. To overcome the problem, Peter James, the husband of the finance director, Natalie James, provided electronic components used in the production of computer chips to Technology Limited through his private company Norton Limited. Norton Limited demands payment in $US prior to the electronic components being supplied. There is no formal agreement in place with Peter James, however, the goods are being provided at competitive prices. You are concerned about the electronic components that Peter James’ company is supplying, because his products are new to the market and you have heard some of Technology Limited’s staff complaining that they are of poor quality.
Due to increased competitive pressure, Technology Limited has recently moved the manufacture of some of its computer chips to Bangladesh. Technology Limited saves around 25 per cent in costs compared to the equivalent Australian made items. However, the manufacturing process takes longer and on a few occasions late delivery from Bangladesh has resulted in lost sales.
Last month, a protester suffered a broken leg, allegedly because he was hit by a company truck. The protester is now suing Technology Limited for damages, claiming the contractor was in fact an employee of Technology Limited at the time of the accident, and was acting on Technology Limited’s instructions. Technology Limited is fighting the case and appears to have a reasonable chance of winning; however, the adverse publicity being generated is making the company nervous about its sales in the future.
During the period, the Australian dollar has remained steady against the Chinese Yuan, although it fell by about 3% against the US dollar. Debtors are invoiced in $US at the time of shipment, and payment is received in $US one month after the shipment is delivered. It takes around six weeks for the charter vessels to travel from Technology Limited’s shipyard at Bigmantle Bay to China. A recent downturn in the Chinese economy is affecting forward orders, which have fallen by 15%.
Required:
Prepare a memorandum to the audit manager, outlining your risk assessment relating to Technology
Limited. When making your risk assessment:
(a) Identify two (2) balance sheet accounts from the information provided that are subjected
to an increase in audit risk. Briefly explain what factors increase the audit risk associated
with the two (2) account balances identified. In your explanation, please mention the key
assertion(s) at risk of material misstatement and the components of the audit risk model
affected for each account balance identified.
(b) Identify how the audit plan will be affected and recommend specific audit procedures to
address the risks associated with each account balance identified.
(Please Note – Maximum Word Limit: 800 Words excluding references)

This question is based on the article below:

1. According to the article, what are the two main factors that tend to raise public debt levels in democracies?
2. The article mentions three mechanisms that can curb excessive government borrowing in democracies. What are those mechanisms? How do they work?

Article: Democracies and debt

ALMOST half the world’s population now lives in a democracy, according to the Economist Intelligence Unit, a sister organisation of this newspaper. And the number of democracies has increased pretty steadily since the second world war. But it is easy to forget that most nations have not been democratic for much of their history and that, for a long time, democracy was a dirty word among political philosophers.

One reason was the fear that democratic rule would lead to ruin. Plato warned that democratic leaders would “rob the rich, keep as much of the proceeds as they can for themselves and distribute the rest to the people”. James Madison, one of America’s founding fathers, feared that democracy would lead to “a rage for paper money, for an abolition of debts, for an equal division of property and for any other improper or wicked projects”. Similarly John Adams, the country’s second president, worried that rule by the masses would lead to heavy taxes on the rich in the name of equality. As a consequence, “the idle, the vicious, the intemperate would rush into the utmost extravagance of debauchery, sell and spend all their share, and then demand a new division of those who purchased from them.”

Democracy may have its faults but alternative systems have proved no more fiscally prudent. Dictatorships may still feel the need to bribe their citizens (eg, via subsidised fuel prices) to ensure their acquiescence while simultaneously spending large amounts on the police and the military to shore up their power. The absolute monarchies of Spain and France suffered fiscal crises in the 17th and 18th centuries, and were challenged by Britain and the Netherlands which, though not yet democracies, had dispersed power more widely. Financial problems contributed to the collapse of the Soviet Union.

Nevertheless, with much of the democratic world now in the throes of a debt crisis, it is tempting to ask whether the fears of Madison and Adams have come to pass. Given the rise in inequality in America and Britain over the past 30 years, it is hard to argue that democracies have led to the confiscation of private wealth. Quite the reverse: modern American politicians either need to be wealthy, or need the financial backing of the rich.

But there is a broader problem. Modern governments play a much larger role in the economy than the ancient Greeks or the founding fathers could have imagined. This makes political leaders a huge source of patronage, in the form of business contracts, social benefits, jobs and tax breaks. As the late political scientist, Mancur Olson, pointed out, these goodies are highly valuable to the recipients but the cost to the average voter of any single perk will be small. So beneficiaries will have every incentive to lobby for the retention of their perks and taxpayers will have little reason to campaign against them. Over time the economy will be weighed down by all these costs, like a barnacle-encrusted ship. The Greek economy could be seen as a textbook example of these problems.

One answer could be to take fiscal policy out of the hands of elected leaders, just as responsibility for monetary policy has been handed to independent central bankers. To some extent, that has been happening. Greece was briefly run by Lucas Papademos, an unelected former central banker, and Italy is still ruled by Mario Monti, a former EU commissioner. These technocrats are, it is assumed, more willing to take unpopular decisions.

Another approach, with which America has occasionally flirted, is to pass decisions to a bipartisan commission. (This may be the best answer to the “fiscal cliff” that looms in 2013.) Since the decisions of such a commission, and indeed of technocrats in Greece and Italy, are still subject to a parliamentary vote, democracy is not completely abandoned.

For a long time, there did not seem to be any limit to the amount democracies could borrow. Creditors have been more patient with democratic governments than with other regimes, probably because the risk of abrupt changes of policy (like the repudiation of Tsarist debts by Russia in 1917) are reduced. But this has postponed the crunch point, rather than eliminated it—and allowed stable democracies to accumulate higher debt, relative to their GDP, than many, more volatile countries ever achieved. Governments can, as Madison suggested, confiscate the wealth of domestic creditors via inflation, taxes or default. But however often they vote, democracies cannot make foreign lenders extend credit. That harsh truth is now being discovered.

Jim Jasons is thinking about starting a company to produce high performance video gaming computers. He loves playing video games. He sees it as an opportunity to be his own boss, making a living doing what he likes best. Jim paid $1,000 for training, and he has already purchased new equipment costing $10,000 to assemble the computers. He estimates that it will cost $750 in materials (case, monitor, keyboard, graphics card, CPU, etc.) to make each computer. If he decides to make computers full time, he will need to rent office and manufacturing space at an estimated $1,200 per month for rent plus another $300 per month for various utility bills. Jim would perform all the manufacturing and run the office, and he would like to pay himself a salary of $5,000 per month. Jim plans to hire two salespeople at a base salary of $1,500 each per month plus a commission of $100 per computer. Jim plans to sell each computer for $1,500. He believes that he can sell 50 computers in December for Christmas, but he is not sure what the sales will be during the rest of the year. However, he is sure that the computers will be popular because so many of his friends play video games. Overall, he is confident that he can pay all his business costs, pay himself, the monthly salary of $5,000 and earn at least $2,000 more than that per month. (Ignore income taxes.)

The following questions will help you analyze the information for this problem. Use Excel for all calculations and Microsoft Word for the written portion. One team member will submit one file in Canvas. You will be graded on accuracy and organization.

A. Preform analyses to estimate the number of computers Jim would need to manufacture and sell each year for his business to be financially successful:

1. List all the costs described and indicate whether each cost is (a) a relevant fixed cost, (b) a relevant variable cost, or (c) NOT relevant to Jim’s decision.

2. Calculate the contribution margin per unit and the contribution margin ratio.

3. Write down the total cost function for the computers and calculate the annual breakeven point in units and in revenues.

4. How many computers would Jim need to sell annually to earn $2,000 per month more than his salary?

B. Identify uncertainties about the CVP calculations:

1. Explain why Jim cannot know for sure whether his actual costs will be the same dollar amounts that he estimated. In your explanation, identify as many business risks as you can. (Hint: For each of the costs for Jim’s business that he has not identified, think about reasons why the annual cost might be different than the amount he estimated.)

2. Identify possible costs for Jim’s business that he has not identified. List as many additional types of cost as you can.

3. Explain why Jim cannot know for sure how many computers he will sell each year. In your explanation, identify as many risks as you can and discuss whether Jim is likely to be biased in his revenue and cost estimates.

4. Explain how business risk and Jim’s potential biases might affect interpretation of the breakeven analysis results.

PART A ANSWERED:

1.)

Relevant Fixed Costs Monthly: Rent $1,200, Various Utility Bills $300, Own Salary $5,000, Base salary for salespeople $3,000 (1500*2), Total Fixed Cost per month $9,500,

Relevant Variable Cost per unit: Cost of materials $750, Sales Commission $100, Total Variable Cost per unit $850

Not Relevant to the decision, Cost of trainning $1,000, Cost of Equipment $10,000, These are sunk cost, already incurred

CONTRIBUTION MARGIN Sales Price per unit $1,500 Variable cost per unit $850 Contribution Margin per unit=1500-850 $650 Contribution Margin Ratio=650/1500= 0.433333

3 TOTAL COST FUNCTION: TC=850Q+9500 TC=Total Cost Q=Quantity Sold

Breakeven Point in Units=Fixed Cost/Unit Contribution Margin Breakeven Point in Units=9500/650 14.61538 Rounded to whole number, Break even point in units 15 Break Even point in Revenue=$1500*15

$22,500 4 Net Earning =$2000 Number of Units to be sold=15+2000/650 =18

PLEASE JUST ANSWER PART B (BOLDED)

Q1: Which of the following is not an algorithm?

1. A recipe.
2. Operating instructions.
3. Textbook index.
4. Shampoo instructions (lather, rinse, repeat).

Q2: Which of the following is true?

1. Pseudocode is used to describe an algorithm.
2. Pseudocode is translatable by the programmer into a programming language (like Java).
3. Pseudocode is used to describe executable statements that will eventually be translated by the programmer into a program.
4. All of the above.

Q3: Which of the following is not a benefit of “goto-less programming”?

1. Easier to debug and modify
2. Shorter
3. Clearer
4. More likely to be bug free

Q4: Which of the following is not a control structure:

1. Sequence structure.
2. Selection structure.
3. Repetition structure.
4. Action structure.

Q5: Which of the following is an action-state symbol?

1. diamonds.
2. circles.
3. rectangles with left and right sides replaced with arcs curving outward.
4. rounded rectangles.

Q6: Which statement is false?

1. Unless directed otherwise, the computer executes Java statements one after the other in the order in which they are written.
2. Activity diagrams normally show the Java code that implements the activity.
3. Like pseudocode, activity diagrams help programmers develop and represent algorithms.
4. The arrows in the activity diagram represent transitions, which indicate the order in which the actions represented by the action states occur.

Q7: Which of the following is a double-selection control statement?

1. do…while.
2. for.
3. if…else.
4. if.

Q8: Which of the following is not a Java keyword?

1. do
2. next
3. while
4. for

Q9: What is output by the following Java code segment?

int temp;

temp = 200;

if ( temp > 90 )

   System.out.println( "This porridge is too hot." );

if ( temp < 70 )

   System.out.println( "This porridge is too cold." );

if ( temp == 80 )

   System.out.println( "This porridge is just right!" );

1. This porridge is too hot.    
2. This porridge is too cold.
3. This porridge is just right!
4. None of the above.

Q10: A decision symbol in an activity diagram takes the shape of a ________.

1. Diamond.
2. Rectangle.
3. Circle.
4. Question Mark.

Q11: Which of the following is not included in an activity diagram for a control structure?

1. Transition arrows
2. Attribute
3. Action state
4. Decision symbols

Q12: Which of the following is not true about the conditional operator ( ?: )?

1. The conditional operator is a ternary operator, meaning that it takes three operands.
2. The first operand is a boolean expression.
3. The second operand is the result value if the condition evaluates to false.
4. The second operand is the result value if the condition evaluates to true.

Q13: What is output by the following Java code segment?

int temp;

temp = 180;

if ( temp > 90 )

{

   System.out.println( "This porridge is too hot." );

   // cool down

   temp = temp – ( temp > 150 ? 100 : 20 );

} // end if

else

{

   if ( temp < 70 )

   {

      System.out.println("This porridge is too cold.");

      // warm up

      temp = temp + (temp < 50 ? 30 : 20);

   } // end if

} // end else

if ( temp == 80 )

   System.out.println( "This porridge is just right!" );

1. This porridge is too hot.
2. This porridge is too cold.
   This porridge is just right!
3. This porridge is just right!
4. None of the above.

Q14: A dangling-else can be clarified by using:

1. Indentation
2. Parentheses ()
3. Braces {}
4. End-of-line comment //

Q15: The empty statement is denoted with what symbol?

1. Semicolon ;
2. Parentheses ()
3. Braces {}
4. End-of-line comment //

ANS: a. Semicolon ;

Q16: Which statement is false?

1. Both syntax errors and logic errors are caught by the compiler.
2. Both syntax errors and logic errors have effects at execution time.
3. Syntax errors are caught by the compiler. Logic errors have effects at execution time.
4. Logic errors are caught by the compiler. Syntax errors have effects at execution time.

Q17: What is output by the following Java code segment?

int temp;

temp = 180;

while ( temp != 80 )

{

   if ( temp > 90 )

   {

      System.out.print( "This porridge is too hot! " );

      // cool down

      temp = temp – ( temp > 150 ? 100 : 20 );

   } // end if

   else

   {

      if ( temp < 70 )

      {

         System.out.print(

            "This porridge is too cold! ");

            // warm up

            temp = temp + (temp < 50 ? 30 : 20);

      } // end if

   } // end else

} // end while

if ( temp == 80 )

      System.out.println( "This porridge is just right!" );

1. This porridge is too cold! This porridge is just right!
2. This porridge is too hot! This porridge is just right!
3. This porridge is just right!
4. None of the above.

Q18: Which of the following is not an error (either a syntax error or a logic error)?

1. Neglecting to include an action in the body of a while statement that will eventually cause the condition to become false.
2. Spelling a key word (such as while or if) with a capitalized first letter.
3. Using a condition for a while statement that is initially false.
4. An infinite loop.

Q19: In an activity diagram, the merge symbol has the same shape as what other symbol?

1. Decision symbol
2. Action symbol
3. Transition arrows
4. Initial state

I need original java code that completes this program and gets it to print out results just like in the example. Also please upload answer in a word document format only.

Implement both linear search and binary search, and see which one performs better given an array 1,000 randomly generated whole numbers (between 0-999), a number picked to search that array at random, and conducting these tests 20 times. Each time the search is conducted the number of checks (IE number of times the loop is ran or the number of times the recursive method is called) needs to be counted and at the end the total number of checks should be averaged.

A few notes

Each algorithm (linear search and binary search) is ran 20 times

Each time a new sorted array of whole numbers is created and populated with random values from 0-999

A value to be searched in the said array is randomly selected from the range 0-999

Each algorithm must display if that number was successfully found

Each algorithm must display the number of checks it took to determine the above answer

It is advisable to create a method that returns the sorted array

Populate the array with random numbers

Search the array next

Return whether or not the value was found in the array

Implement both searches as a method

However instead of returning whether or not it found the number it should return the number of checks.

Whether the value is or is not found can be printed in the method

Binary search is fairly simple to create using recursion

Do not count the out of bounds or stopping index as a check

Example:

Welcome to the search tester. We are going to see which algorithm performs the best out of 20 tests

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 753

Binary Checks: 8

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 834

Binary Checks: 10

Searching using linear search

Not Found

Searching using binary search

Not Found

Linear Checks: 1000

Binary Checks: 10

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 515

Binary Checks: 6

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 757

Binary Checks: 7

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 395

Binary Checks: 9

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 117

Binary Checks: 7

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 334

Binary Checks: 10

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 521

Binary Checks: 9

Searching using linear search

Not Found

Searching using binary search

Not Found

Linear Checks: 1000

Binary Checks: 10

Searching using linear search

Not Found

Searching using binary search

Not Found

Linear Checks: 1000

Binary Checks: 10

Searching using linear search

Not Found

Searching using binary search

Not Found

Linear Checks: 1000

Binary Checks: 10

Searching using linear search

Not Found

Searching using binary search

Not Found

Linear Checks: 1000

Binary Checks: 10

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 901

Binary Checks: 10

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 626

Binary Checks: 8

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 361

Binary Checks: 9

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 630

Binary Checks: 9

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 443

Binary Checks: 7

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 818

Binary Checks: 10

Searching using linear search

Found!

Searching using binary search

Found!

Linear Checks: 288

Binary Checks: 7

The average number of checks for 20 were:

Linear Search 664

Binary Search 8

For this program you will implement the following utility functions to test mastery of C strings.

*******you MUST use these these function*****

void removeBlanks(char *src, char *dest);

void replaceChar(char *src, char oldChar, char newChar);

char *flipCase(const char *src);

Please read the description of these functions carefully.

In the removeBlanks function you will implement a routine that takes a string in as src and outputs the same string into dest but removing any blank space character encountered. For example, if the src is “Hel lo Wor ld!”, this function should return the value “HelloWorld!” via the dest pointer . 1

In the replaceChar function your function should operate much like a find and replace operation in a word processor works, meaning that the function will replace any instance of the character oldChar and replace it with the character newChar. For example, for a src string “Hel lo Wor ld”, if oldChar is ‘o’ and newChar is ‘e’, then src is modified as “Hel le Were ld!”.

In the flipCase function the function turns each lowercase character into an uppercase character and each uppercase character into a lowercase character. For example, if the src string is “GNU Image Processing Tool-Kit”, then this function should return a string “gnu iMAGE pROCESSING tOOL-kIT”.

steps for flipCase function: 1. dynamically create a new string (character array) equivalent to the length of src. In this string, you will store the src after the case converstion. 2. Use a FOR LOOP interate through each character of src. Check for upper case and lower case, else assign the current character of src to the new string (no conversion is required) 3. Finally add a null terminating character at the end of the new string and return it.

In your main function, you should prompt the user for a string to use for the first two functions, and a string to use for the third function. The user should be allowed to enter any string including ones with white spaces as input. You should also prompt the user for a character to replace and a replacement character for the flip case function. You may assume that any input string will be at maximum 100 characters.

****************************

So I can't figure out how to fix my code. It is IMPORTANT that it is fixed following the guidlines above.

#include<stdio.h>
#include<stdlib.h>
#include<ctype.h>
#include<string.h>

void removeBlanks(char *src, char *dest);
void replaceChar(char *src, char oldChar, char newChar);
char *flipCase(const char *src);

int main(void) {
  
   char string1[100];
   char string2[100];
   char before;
   char after;
   char destination;
  
  
   printf("Enter string for remove blanks and replace char function functions:\n");
   fgets(string1, 100, stdin);
   //printf("%s", string1);
  
   printf("Enter string for flip case function:\n");
   fgets(string2, 100, stdin);
   //printf("%s", string2);
  
   printf("Enter character to replace:\n");
   scanf("%c", &before);
  
   printf("Enter replacement character:\n");
   scanf("%c", &after);
  
  
   printf("1. Remove Blanks\n");
   printf("Remove all blanks in %s", string1);
   removeBlanks(string1, &destination);
   printf("%c\n", destination);
  
   printf("2. Replace Char\n");
   printf("Remove all '%c's in '%s' with '%c's:", before, string1, after);
   replaceChar(string1, before, after);
   printf("%s\n", string1);
  
   printf("3. Flip Case\n");
   printf("Original string is: %s", string2);
   printf("Flipped case string is: %s\n", flipCase(string2));
  
  
   return 0;
   }
  
  
  
void removeBlanks(char *src, char *dest) {
   int length = strlen(src);
   int i = 0;
   int j = 0;
   for(i = 0; i < length; i++) {
       if(src[i] != ' ') {
           dest[j] = src[i];
           j++;
       }
   }
   dest[j] = '\0';
}

void replaceChar(char *src, char oldChar, char newChar) {
   int length = strlen(src);
   int i;
   for(i = 0; i < length; i++) {
       if(src[i] == oldChar) {       //Compare
           src[i] = newChar;       //Assign
       }
   }
}

char *flipCase(const char *src) {
  
   char *tempStr = malloc(strlen(src) + 1);
  
  
   //Copy source to tempStr
   strncpy(tempStr, src, strlen(src));
   int i;
  
   //Check if case if lower or upper
   for(i = 0; i < strlen(src); i++) {
       if(isupper(src[i])) {
           tempStr[i] = tolower(src[i]);
       } else if(islower(src[i])) {
           tempStr[i] = toupper(src[i]);
       } else {
           tempStr[i] = src[i];
   }
   tempStr[i] = '\0';
   }
   return tempStr;
   //return 0;
}

Italian Valley Restaurant

Having assessed the changing dietary needs of your town, you are considering investing in a new Italian

restaurant which you plan to name Italian Valley. The restaurant will feature live musicians, appetizers,

and a stocked bar. You are trying to assess the likely profitability of this business venture. As a new

graduate of the UWI your first step is to prepare a complete capital budgeting analysis for the 5 years you

plan to operate the restaurant before you sell it.

Having spoken with local vendors, other restaurant owners, bankers, and builders you collected the

following data and information about the proposal.

You plan to use a building currently owned by your family, however there will be need for some renovation

and improvements to the property. Your parents have said that you can use the retail space in any way

you wish for free. After checking on local lease rates you determine this space would lease for $75,500

per year. Your family also owns another restaurant downtown. You predict that your new one will

decrease its revenues by $15,000 per year. Your parents tell you that this sum will be taken from your

annual family stipend.

Some of the major improvements to the property include the purchase of cooking equipment, building a

stage, seating, and interior décor. The construction is estimated to cost $1.75 million. An additional

$375,000 will be spent on chairs, tables, bar equipment, and decorations. Depreciation will be over 7

years using MACRS*. You determine that you will require an average cash balance of $15,000 and

inventory of $20,000. Accounts payable should average $10,000. Your local bank has agreed to loan you

monies to pay for these expenses at a 15% interest rate.

You plan to hire a research consultant to conduct a market study, since you believe your chances of

success will increase with greater information about the restaurant market. The charge for this report

will be $200,000.

Revenues are estimated to be $600,000 the first year. Revenues are expected to increase by 20% the

second year, 15% the third year, and continue increasing at 8% thereafter. Fixed annual operating costs

are estimated to be as follows.

Employee salaries = $110,000;

Heat, electricity, water, and janitorial services =$75,000.

The food and liquor bill is expected to be 15% of revenues. Total taxes are estimated to be 40% of net

revenues.

Your plan is to run the bar for 5 years, then to sell it to an investor for $2,000,000.

Required:

1. Prepare a cash flow analysis which includes:

a. the initial investment, ( 5 points)

b. the annual net cash flows, and (46 points)

c. the terminal cash flow. (7 points)

2. What is the Net Present Value (NPV) and Internal Rate of Return (IRR) of this venture? (5 points)

3. Should you invest in this venture and why? (2 points)

(TOTAL 65 POINTS)

Clearly SHOW ALL WORKING in a table format in either Microsoft Excel or Word. Ensure that your table

shows all relevant cash flows such as initial investment flows, Revenue, Expenditure, Depreciation,

Taxes, terminal year cash flows from year 0 to end of project life.

*MACRS Depreciation Table

MACRS Depreciation Table

Individual Assignment Rubric

1. Prepare a cash flow analysis which includes:

a. the initial investment, (includes purchase price 2 points; NWC 2 points; total costs 1

point) ( 5 points)

b. the annual net cash flows, (includes Revenues 5 points; Breakdown of all expenses 6

points; total operating expenses 5 points; depreciation 5 points; Earnings Before Taxes 5

points; Taxes 5 points; Earnings After Taxes 5 points; Depreciation Add back 5 points)

(46 points)

c. the terminal cash flows (include taxes on sale 5 points, NWC 1 point, Terminal Sale 1

point) (7 points)

2. Correct Calculation of Net Present Value (NPV) (3 points) ; Correct Calculation of Internal Rate of

Return (IRR) (2 points) (5 points)

3. Correct decision to invest in this venture and why?

Can I get provided a business plan of anything you could think of from the top of your head? I was thinking a cafe/bar/entertainment however if you provide something else that is fine. DESPERATELY need a good mark for this assignment. so Im going to need all the help I can get! the requirements are below

1.Introduction

• A clear introduction of your NEWbusiness idea, make sure that first time readers can understand your business idea.
• Please also don’treuse the business idea which has already been presented in the group assessment.

2.Business Model Canvas(please make the full use of the Business Model Canvas template. Additional information/clarification can be added if necessary, but please be aware of the word limit and balance with other parts of the report)

• Customer Segments
• Value Proposition
• Customer Relationships
• Channels
• Key Activities
• Key Resources
• Key Partners
• Revenue Structure
• Cost Structure

3.Market

(where possible, please support this session with relevant research, facts and figures)

The following (but not limited to) major questions are to be addressed:

3.1. What is the size of the market? Is the market at full capacity?

3.2. What is the growth rate of the industry? How competitive is the industry? What keeps new competition from entering this market (barriers to entry)?

3.3. Is there any trend that is affecting positively or negatively firms in the industry?

3.4. How can the market be segmented?

3.5. Who and Where are the targeted customers?

3.6. Where are customers getting the product now? Who are the major competitors in the market and how strong are they?

3.7. Where is the location of the business? How many customers would potentially purchase from you?

4.Operations and Technology

(where possible, please support this session with relevant research, facts and figures)

The following (but not limited to) major questions are to be addressed:

4.1. What are the options for developing the technology (customer, off the shelf, design by yourself, or subcontract)?

4.2. What technological changes are changing or emerging that may affect the business?

4.3. What are the options for producing the product or service? (in-house, subcontract, license, joint venture or partnership, or a combination of those options).

4.4. What are the options for sales and distribution? (in-house, whole sale, distributors or sales representatives, license, joint venture or partnership, or combination)

4.5. What resources are required for development and are they available to you (skills, raw materials, components, suppliers, facilities & equipment etc)?

4.6. What are the laws and regulation relating to the business? (e.g. industry standards or regulations,  personal certifications, intellectual property (patents, trademarks, copyrights), environmental liability, etc)

4.7. Has the research discovered any moral or ethical issuesthat you might have to address? (Please also refer to the marking rubric in subject learning guide for more information about this criteria)

5.Human Resources

(where possible, please support this session with relevant research, facts and figures)

The following (but not limited to) major questions are to be addressed:

5.1. What technical and management experience is required?

5.2. Who are the owners and what are their roles? (Entrepreneur, Manager, Technical Expert etc)

5.3. What is the ownership structure?

5.4. What are the manpower requirements?

• How many employees will you need in the 1st, 2nd and 3rd years?
• How will you find the right employees?
• How will you compensate employees (pay for time, for production, for knowledge, or a combination)?
• How will you motivate employees?
• What training will they need on an ongoing basis?

5.5. What is the company’s growth strategy?

• How will quality be managed and maintained?
• How will organizational structures change with growth?
• What career paths will employees have available?

6.Finance

(where possible, please support this session with relevant research, facts and figures)

The following (but not limited to) major questions are to be addressed:

6.1. What are the projected Revenues from the sale of your product or service?

• From the market research, what is the selling price per unit?
• From the market research, what is the projected sales volume in "units sold?" and in "dollars sold"?
• What is the total expected revenue?

6.2. How much is the start-up costs and equipment/capital costs (see attached Appendix 1 for the template)?

6.3. Prepare the projected Profit and Loss statements for the first 3 years (see attached Appendix 2 for the template).

6.4. What are the possible sources of financing?

• Where is the money from?
• What are the chances of getting the money?
• What will you have to give up?

TWO MEANS – INDEPENDENT SAMPLES

Choose a variable from the advising.sav data set to compare group means. While the choice of which variable to test is up to you, you must remember that it must be a metric variable. The grouping variable, which is used to define the two groups to be compared, must be categorical.   You can look in the “Measure” column of the “Variable View” in the data file for help in determining which is which. The managerial question is whether or not there is a significant difference between the groups for the metric variable you have chosen.

Once you have the results, report your findings using the five step hypothesis testing procedure outlined in class. (See below.)   For Step 4, simply cut and paste the SPSS output into the report. This can be done by clicking on the desired portion of the output which will then be highlighted, and then right clicking on the highlighted portion and copying it to your flash drive. (Note that you may want to drop the results into a word document immediately since if you do not have SPSS on your personal laptop, you will not be able to open any SPSS output.) Then state the answer to the managerial question that was initially posed. For example, is there a significant difference between the two groups defined by the grouping variable (which you must identify in your report) for the metric variable tested? Also, interpret the confidence interval provided for the test. Does it indicate a significant difference or not?   

PAIRED SAMPLE T-TEST

Choose a pair of metric variables and run a paired sample t-test on the pair. Again, these must be metric variables. The managerial question will be “Is there a significant difference between the two variables?” for the pair. Report your findings using the same procedure described above, including an interpretation of the confidence interval.

REPORT(SAMPLE)

Your report will consist of two hypotheses tests, (one for the independent sample test and one for the paired sample test). It will look something like this (for the independent sample test):

1: H₀: μ₁= μ₂

H_a: μ₁ ≠ μ₂

2: Two group independent sample t-test (note that SPSS does everything as a t-test regardless of sample size).

3: α=.05 → t_crit = ±whatever the appropriate value is

4

5: Make a decision regarding the null hypothesis and interpret the confidence interval.

6: Answer the managerial question.

RESULTS AFTER RUNNING   (DATA )

INDEPENDENT

PAIRED

PLEASE ANSWER INDEPENDENT AND PAIRED PARTS REPORT INDEPENDENTLY AND FOLLOW THE SAMPLE REPORT'S FORMAT TO ANSWER THE 6 QUESTIONS

PLEASE USE TWO REPORTS FOR INDEPENDENT AND PAIRED PARTS