ACC 206

Week Five Assignment

1. Listen to the following videos and then complete the assignments using the changed numbers on the guidance report. Place your answers on the guidance report.
2. Open the Guidance Report and rework the problem with the changed numbers and place your answers on the guidance report. Do not alter the guidance report.
3. Submit the guidance report using the Assignment Submission tab below.

ANSWERS ARE BASED ON START DATE.. MY START DATE IS JANUARY

Complete the following problems and exercises:

• Chapter Eight Exercise 1
• Chapter Eight Exercise 3
• Chapter Eight Problem 3
• Chapter Eight Problem 4

Week Five Guidance Report

Chapter 8 Exercise 1

The above video can also be accessed using this link:

http://ashford.mediaspace.kaltura.com/media/ACC206A+Chapter+8+Exercise+1/0_k3r52t52 (Links to an external site.)Links to an external site.

Chapter 8 Exercise 3

The above video can also be accessed using this link:

http://ashford.mediaspace.kaltura.com/media/ACC206A+Chapter+8+Exercise+3/0_zwntp06u (Links to an external site.)Links to an external site.

Chapter 8 Problem 3

The above video can also be accessed using this link:

https://ashford.mediaspace.kaltura.com/media/ACC206+Week+Five+Ch+8+Pb+3+v.2/0_92u0trhv (Links to an external site.)Links to an external site.

Chapter 8 Problem 4

The above video can also be accessed using this link:

http://ashford.mediaspace.kaltura.com/media/ACC206A+Chapter+8+Problem+4/0_pks4jpsq (Links to an external site.)

Student

Guidance Report

(2)

Guidance Report

0

0

00

00

00

00

8000

, enter rate and use a column with a zero amount for years 1-4(row 1-4)and 12000 entered in year 5(row 5)

Annual receipt:
(Note: use NPV and same approch as above.)

Account to
be changed Original
Amount Jan – Feb Mar – Apr May – Jun Jul – Aug Sep – Oct Nov – Dec

15000 16000

YOUR ANSWERS BASED UPON COURSE START DATE
Account to
be changed Original
Amount Jan – Feb Mar – Apr May – Jun Jul – Aug Sep – Oct Nov – Dec

50 52 54 56

60 62

YOUR ANSWERS BASED UPON COURSE START DATE

Year 1
NPV
Account to
be changed Original
Amount
Jan – Feb Mar – Apr May – Jun Jul – Aug Sep – Oct Nov – Dec

YOUR ANSWERS BASED UPON COURSE START DATE

Year 1 costs

Year 3 costs
Year 4 costs
Year 5 costs
Year 6 costs
Net Present Value of costs

Net Present Value of costs

																																																																																																																																																																									Ashford University ACC206
Week Five
LISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORT	Guidance Report Download Date	11/28/17	Guidance Report Revision Date	12/1/17
YELLOW INDICATES ACCOUNT AMOUNTS CHANGED
Change Account to:
Change to: Based Upon Course Start Date
Exercise/ Problem				Account to be changed				Original Amount				Jan – Feb				Mar – Apr				May – Jun				Jul – Aug				Sep – Oct				Nov – Dec
Ch 8 Ex 1	Part A – Year 5 – Single cash flow	12000	12100	12200	12300	12400	12	50	12	60
Part B -Yearly amount – Annual receipt		16000	16100	1	62	16300	16400	16500	16600
Part C – End of year 1 – Single receipt		15000	15100	1	52	15300	1	54	15500	1	56
Part D – Annual receipt year 1		8000	8150	8300	8450	8600	8750
Questions				YOUR ANSWERS BASED UPON COURSE START DATE
Single cash flow:
(Note: Use Excel	NPV
	Annual receipt:
(Note: Use Excel PV function.)
Single receipt:
	(Note: use NPV and same approch as above.)
AUDIO/VIDEO EX 5 <<<
Ch 8, Ex 3
	Year 1	17000	18000	19000	19500	18500
Compute the net present value of the proposed investment.
Considering the time value of money , should Contempo acquire the new equipment? Why?
Ch 8, Pb 3	Number of games	58
Revenue per year-class 1
Revenue per year-class 2
Total revenue
Total yearly expenses (Added extra costs per game minus depreciation) X (# of games)
Cash flow year 1(Inflows- expenses)
Cash flow year 2
Cash flow year 3
Cash flow year 4
Net Present value
Present value of residual:
Year 2
Year 3
Year 4
Total Present value Calculation:
NPV Cash Inflows
NPV of residual:
Cost of Arena
Total Net Present Value
In addition to the cash flows presented here, what other cash flows might change if the Eskimos add on to the arena?
Ch 8, Pb 4
Old equipment-Yearly operating costs	27200	$ 27,400	$ 27,600	$ 27,800	$ 28,000	$ 28,200	$ 28,400
New equipment-Yearly operating costs	21000	$ 21,350	$ 21,700	$ 22,050	$ 22,400	$ 22,750	$ 23,100
Keep Equipment:
	Year 1 costs
Year 2 cost
	Year 3 costs
	Year 4 costs
	Year 5 costs
	Year 6 costs
		Net Present Value of costs
Note: Disregard the sale amount, that will be used if we buy new equipment. Instead treat the residual value as the final cash inflow.
Buy Equipment:
Year 2 costs
Add purchase amount
Add sale amount
Note: The yearly costs are added and are a negative cash flow. The cost of the new machine is also negative and the sale of the equipment is positive. Both the purchase and sale are treated as cash flows as of today.
Columbia’s management believes that the time value of money should be considered in all long-term decisions. Briefly discuss the rationale that underlies management’s belief.

file:///C:/Users/cpabi_000/Documents/ACC205%20Chapters/Produced%20videos/Week%20One/CH%201%20EX5.mp4

file:///C:/Users/cpabi_000/Documents/ACC205%20Chapters/Produced%20videos/Guidance%20Report/Guidance%20Report.mp4

file:///C:/Users/cpabi_000/Documents/ACC205%20Chapters/Produced%20videos/Week%20One/CH1%20EX2.mp4

file:///C:/Users/cpabi_000/Documents/ACC205%20Chapters/Produced%20videos/Week%20One/CH%201%20EX%208.mp4

file:///C:/Users/cpabi_000/Documents/ACC205%20Chapters/Produced%20videos/Week%20One/CH%201%20PB%203.mp4

file:///C:/Users/cpabi_000/Documents/ACC205%20Chapters/Produced%20videos/Week%20One/CH%201%20EX5.mp4