Latest news: --- Download Final/Mid Term Papers helping Material More Easily without wasting your time --- Learn C++ First Lesson Part Two in Urdu By Virtual Community --- Learn C++ First Lesson Part One in Urdu By Virtual Community --- How to Run and write First Program in Dev C++ ---

Learning Oppertunity

Institution session to learn Programming (,c# / php )
Online (Practice and Theory)
Who are interested to join this session, email us on
Please note !!It is paid session, For fee information email us.
Session will held by M Atif Ali

Lost Password?   -   Register

Post Reply 
Thread Rating:
  • 13 Votes - 2.85 Average
  • 1
  • 2
  • 3
  • 4
  • 5
ACC501 3rd GDB solution Due date 14 Jan 2013
Author Message
01-11-2013, 10:30 PM
Post: #1
Mairah_ch Offline [ Member From :Feb 2012]
"Retired Team Members"
Retired Team Members
ACC501 3rd GDB solution Due date 14 Jan 2013
Learning Objectives:

This particular Graded Discussion Board (GDB) will help the students understand:

· The concepts regarding two important capital budgeting techniques i.e. Internal Rate of Return (IRR) and Average Accounting Return (AAR).
· The analytical application of said techniques according to the provided information in a given scenario.
· The technical difference between the said important techniques.


Creative Company (Private) Limited has been operating in the field of financial consultancy business for last 25 years. It has become a well-known company due to its efficient and well-educated management. One of the financial experts of the company has recently left the company due to some unknown reasons. HR Department is now searching for a new financial expert who should have special expertise in the field of project evaluation as the company has to deal with the project evaluations for its clients on regular basis. After advertising the said vacancy, the company is now going through the recruiting process and the short listing has almost been done for the post. The interviews have been scheduled in the coming week. One of the HR managers suggests that the financial skills regarding project evaluation should be tested by having a discussion on two of the capital budgeting techniques i.e. IRR and AAR. On the day of interview, the interviewees have been provided with the following details about three projects:

Project A
Project B
Project C
(Rs. 100,000)
(Rs. 100,000)
(Rs. 100,000)
Rs. 25,000
Rs. 15,000
Rs. 125,000
Depreciation (per year)
Rs. 5,000
Rs. 5,000
Rs. 5,000
Net Profit
Rs. 100,000
Rs. 100,000
Rs. 100,000
7.93 %
20.0 %
20.0 %
20.0 %


How would you respond to the following questions during the interview if you are one of the potential candidates for the said post?

Why IRR (Internal Rate of Return) is different for all three projects?
Why AAR (Average Accounting Return) is same for all three projects?
Which of the techniques is better to use in order to select the project in this particular scenario and why? Explain with rationale.

Important Instructions:

1. Your discussion comments must be based on logical facts.

2. Your comments should be brief and to-the-point. Avoid unnecessary details.

3. The GDB will remain open for 3 days or 72 hours (excluding weekend) --OR-- 5 days or 120 hours (including weekend)

4. Do not copy or exchange your comments with other students. Two identical / copied comments will be marked Zero (0).

5. Obnoxious or ignoble comments should be strictly avoided.

6. Questions / queries related to the content of the Discussion Board, which may be posted by the students on MDB or via e-mail, will not be replied till the due date is over.
Our Sponsors

Post Reply 

Messages In This Thread
ACC501 3rd GDB solution Due date 14 Jan 2013 - Mairah_ch - 01-11-2013 10:30 PM

Possibly Related Threads...
Thread: Author Replies: Views: Last Post
New1 ACC 501 -Assignemnt 2 idea solution Waqasahmedtanoli 2 1,197 06-25-2013 02:49 PM
Last Post: **Aamira Queen**
  ACC501 - Business Finance_MID_SPRING2007_S1 sana 1 1,153 05-13-2013 02:41 PM
Last Post: **Aamira Queen**
  ACC501 - Business Finance_MID_SPRING2006. sana 1 1,151 05-13-2013 02:40 PM
Last Post: **Aamira Queen**
  ACC501 - Business Finance_MID_FALL2006_S3 sana 1 1,246 05-13-2013 02:40 PM
Last Post: **Aamira Queen**
  acc501 asgmnt no 1 solution by cndutr **Aamira Queen** 0 900 05-09-2013 03:25 PM
Last Post: **Aamira Queen**
New2 acc501 asgmnt no 1 solution due date 6 may 2013 **Aamira Queen** 2 3,205 05-02-2013 09:14 PM
Last Post: **Aamira Queen**
  ACC501 2nd Assignmnt solution... Mairah_ch 1 1,275 01-22-2013 10:45 PM
Last Post: Isha saman
Wink ACC501 Current MID Term Papers Fall 2012 Date: 08-December-2012 to 19-December-2012 **Aamira Queen** 0 1,015 12-12-2012 11:39 PM
Last Post: **Aamira Queen**
  ACC501 - Business Finance_FINAL_FALL2006 sana 0 972 06-07-2012 03:51 PM
Last Post: sana
  ACC501 - Business Finance_FINAL_SPECIAL2006 sana 0 982 06-07-2012 03:50 PM
Last Post: sana

Forum Jump:

User(s) browsing this thread: 1 Guest(s)

Find US

Terms of Use | Our Team | Virtual Community (c) All rights reserved 2008-2013
Powered By: Eventual Solutions