(a) 0 – $18,200 | Nil | $18,201 – $37,000 | 19c for each $1 over $18,200 | $37,001 – $80,000 | $3,572 plus 32.5c for each $1 over $37,000 | $80,001 – $180,000 | $17,547 plus 37c for each $1 over $80,000 | $180,001 and over | $54,547 plus 45c for each $1 over $180,000 | According to Australian Taxation Office (ATO), the individual income tax rates in Australia for Australian Residents for the 2015-2016 financial year are shown as above. (b) Individual income tax payable in the 2015-2016
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1. Discuss the difference between – State also advantages & disadvantages each: a. The payback period & the discounted payback period criteria of capital budgeting. The payback period measures the time that it takes to recoup the cost of the investment. If the cash flows are an annuity, then we can simply divide the cost by the annual cash flow to determine the payback period Otherwise, as in the example, we subtract the cash flows from the cost until the remainder is zero
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| 2.0 | Sales Forecast | | | 3 | | | 2.1 | Sales Forecast | 3 | | | 2.2 | Methods and Assumptions | 3 | 3.0 | Capital Expenditure Budget | | | 4 | 4.0 | Investment Analysis | | | 4 | | | 4.1 | Cash flows | 4 | | | 4.2 | NPV Analysis | 4-5 | | | 4.3 | Rate of Return Calculations | 5 | | | 4.4 | Payback Period Calculations | 6 | 5.0 | Pro Forma Financial Statements | | | 6 | | | 5.1 | Pro Forma Income Statement | 6 | | | 5.2 | Pro-Forma Cash flow Statement
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likely to go bankrupt. That $3,500 difference can add up over time. When it comes to net income, the figures say that the company A can make more money than company B, but the cash flow is where we can see the biggest gain. The next item is the NPV, net profit revenue, this is a much bigger decision maker than net income or cash flow. Net profit revenue tells us how the decision-making process works. If the company is a positive buy then the company will flourish, but if the company has a negative
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consisted of GBP12million expenditure can improve the production efficiency and achieve the energy savings. This report investigates the analysis of the Merseyside project and figure out the issues of the project through the calculation of new NPV and IRR. In addition, the report provides the recommendation of whether to accept the project. Issue 1: Shut down period For such a large size of the project taking GBP12million expenditure, the shut down period of 45 days is too short for the company
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Capital Budget Recommendation University of Phoenix John ACC 543 Bruce MCMenemy This paper will discuss various capital budget evaluation techniques. This paper will differentiate between these techniques to determine the best course of action for Guillermo. This paper will provide a course of action based on capital budget evaluation techniques. This paper will provide present value calculations to support the recommended course of action for Guillermo Furniture. Evaluation Techniques There
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Contents Introduction 2 3.1 & 3.2 Produce graphs using spread sheets and draw valid conclusions based on the information derived. Create trend lines in spread sheet graphs to assist in forecasting for specified business information 3 3.3 Prepare a business presentation using suitable software and techniques to disseminate information effectively. 11 3.4 Produce a formal business report 12 4.1 Use appropriate information processing tools 17 4.2 Prepare a project plan for an activity
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Students Name Teachers Name Date Task 1 The investment project in consideration for Fantasy Airlines is worth for £350 million for an estimated ten years of their life. There are majorly two large plane manufacturers Airbus and Boeing, considering the history of safety we decide to pursue Boeing as the supplier of these aircrafts. Since Fantasy Airlines is a public limited company therefore, debt, preferred shares and equity options are available to Fantasy Airlines to
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Memo OCEAN CARRIERS Date: January 2, 2001 To: Mary Linn, Vice President of Finance From: Thomas Harper Subject: Investment in New Capesize Bulk Ship After analyzing the commissioning of a new capsize ship for a three-year lease, my team has come to the conclusion that Ocean Carriers should move forward with the investment only if it is built and registered in our Hong Kong office. There were key assumption my team and I made in our analysis and they are as follows:
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The NPV, IRR, MIRR, and discounted payback (using a payback requirement of 3 years or less) methods always lead to the same accept/reject decisions for independent projects. For mutually exclusive projects with normal cash flows, the NPV and MIRR methods can never conflict, but their results could conflict with the discounted payback and the regular IRR methods. Multiple IRRs can exist, but not multiple MIRRs. This is one reason some people favor the MIRR over the regular IRR.
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