Public Budgeting-Revenue Sources Tammy E Bushman, BS, BHT, CRSS ACC/574 Public Budgeting August 24th, 2015 Lana Salomonson Public Budgeting-Revenue Sources Three revenue sources in public budgeting Charges for services: Charges for services are described as consumer charges and additional fees that derive from governmental and business endeavors. Such charges for governmental activities include elements such as licenses, permits, fines, forfeits, and for performing or running distinctive
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1. Describe the Net Present Value (NPV) method for determining a capital budgeting project's desirability. What is the acceptance benchmark when using NPV? Net present value compares today’s dollar value to the value of that same dollar the future. This amount includes inflation and returns. This method is likely the most correct budgeting method that business owners can use in the decision making regarding new capital projects. If the NPV of a project is positive, then it will be accepted.
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Part A Question 2.12 A) Total cash outlay = 500 000 x $6.10 + 4 300 = $3 104 300 Pimento Ltd General Journal Contingencies Reserve 700 000 Retained Earnings 1 000 000 Share Capital 1 404 300 Cash at bank 3 104 300 (Buy back of 500 000 ordinary shares at $6.20 per share and buy back costs of $4 300) B) Total cash outlay = 500 000 x $1.50 + 4 300 = $754 300 Pimento Ltd General Journal Retained Earnings 70 000 Share Capital 684
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Present Value and Capital Budgeting TUI University FIN301-Principles of Finance December 26, 2011 Abstract In this paper I will calculate the present value of income from a gold mine. Present Value and Capital Budgeting Part I A. Suppose your bank account will be worth $15,000.00 in one year. The interest rate (Discounted Rate) that the bank pays is 7%. is the present value of your bank account ? What would the present value of the account be if the
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Capital Budgeting Scenarios Paper Megan Bailey FIN/486 3/21/2016 Beverley Loyd Capital Budgeting Scenarios Paper The selected proposal to purchase a labor-saving piece of equipment that will last five years assumes the discount rate or the weighted average cost of capital is 10%. Since the labor content is at 12% of $10 million in annual sales, this can be noted as an annual labor cost of $1.2 million (10,000,000 x 0.12). The new piece of equipment
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Tiffany White March 19, 2015 Business 3062 Fundamentals of Finance Unit 5 Assignment 1 Capital Budgeting Measurement Criteria 1. Describe the Net Present Value (NPV) method for determining a capital budgeting project's desirability. What is the acceptance benchmark when using NPV? Net Present Value (NPV) method for determining a capital budgeting project’s desirability is by computing the difference between the present values of a project’s cash inflows and outflows. Since this calculation includes
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Chapter 11 The Basics of Capital Budgeting Integrated Case 11-24 Allied Components Company Basics of Capital Budgeting You recently went to work for Allied Components Company, a supplier of auto repair parts used in the after-market with products from Daimler, Chrysler, Ford, and other automakers. Your boss, the chief financial officer (CFO), has just handed you the estimated cash flows for two proposed projects. Project L involves adding a new item to the firm’s ignition system line;
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Most people like to have some money left over after paying the bills, to take a trip, fix up the house, or save for a rainy day. Businesses are no different. But what we call mad money, they call free cash flow. Free cash flow is the remaining cash flows that are available for use by a company to bring added wealth and value to the shareholders after all the bills have been paid. It represents real cash. The presence of free cash flow indicates that a company has cash to expand, develop new
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Budgeting Infrastructure in Dehsabz-Barikab City Development Agency (DCDA) Dehsabz-Barikab City Development Agency (DCDA) is a semi-governmental agency that is responsible for developing the new Kabul (Capital City for Afghanistan). The development of the new city is financially supported by the Government of Afghanistan, Japan International Cooperation Agency (JICA). The World Bank as the administrator of Afghanistan Reconstruction Trust Fund (ARTF) is directly involved in financing and overseeing
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MIA ICS Case Writing Group Case Study No. 3 WHY DON’T WE SELL THE CLUB? By Hur Tze Huan CA(M), FCMA(UK), CFP, MBA(UKM), Cert. Trainer The Club Releks Golf & Country Club (the Club) was one of the few members’ clubs in Malaysia. Its 4,000 plus members not only enjoyed golfing and other recreational activities of the Club, they were also each a part owner of the Club’s assets, including the land. The Club’s 36-hole course sat on 300 acres of prime land surrounded by residential and shop-office
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