urm how u want me to help u? if u are talking abt sch, hmm i will only be in sch this saturdayOriginally posted by charlene_:ohh, thats nice of you..
mm
do you mind helping me out with my finance?
cause im like really in a very bad state for the test
and i want to do well..
Erm.. ahhh, thanks alot. Gimme some time to think about it... I'll do the calculation now hehe... omg, u're really good. Give me some time... i'll do the calculations now... i'm really bad at this alsoOriginally posted by laurence82:Hmm, this is not a trick question right?
ARR is simply average net profit/average book value
where average net profit is sum of all annual net profits/ number of years
just rem to include traiing costs in first year
and where average book value is (initial investment + salvage value)/ number of years....
wha even the mod thinks highly of laurence82Originally posted by joeacid:Erm.. ahhh, thanks alot. Gimme some time to think about it... I'll do the calculation now hehe... omg, u're really good. Give me some time... i'll do the calculations now... i'm really bad at this also![]()
haha yahOriginally posted by SMAPLionHeart:wha even the mod thinks highly of laurence82![]()
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usually i'll ignore him..Originally posted by charlene_:haha yah
chomp chomp.
mm i guess its ok then cause i will be working on saturdayOriginally posted by laurence82:urm how u want me to help u? if u are talking abt sch, hmm i will only be in sch this saturday
ignore who?Originally posted by laurence82:usually i'll ignore him..
hmm wad taking joeacid so long?![]()
Frankly... i'm kinda stuck out here... could u pls show me how u obtain those answer? coz no matter how i try, i find weird answers... oh god... this is the 1st time i met a complex AAR like this....Originally posted by laurence82:usually i'll ignore him..
hmm wad taking joeacid so long?![]()
just want to know, did ur lecturer provide u with the solutions?Originally posted by joeacid:Frankly... i'm kinda stuck out here... could u pls show me how u obtain those answer? coz no matter how i try, i find weird answers... oh god... this is the 1st time i met a complex AAR like this....![]()
That's the thing.. my lecturer haven't give me the answer to this question... gimme few mins.. nid to disgest...Originally posted by laurence82:just want to know, did ur lecturer provide u with the solutions?
ok, net profit ,calculate net profit from year 1 - 9
1st Year
Returns 50,000
Running Costs -15,000
Training Costs - 8,000
Net profit 27,000
Repeat for 2nd year
just change the returns for year 4-6, and then year 7-9
similarly, change costs when u reach year 7-9
Do this part first. Ur total net profit should be $403,000
OIC GREAT!!! Thanks alot!!! i understand now! heheOriginally posted by laurence82:bingo!
Avg profit of $47,778 is from sum of net profits/ 9 years
Now, avg book value
u invested $250,000
Avg book value = (Investment + Salvage Value)/2
sorry that in my first post i said number of years, by right it should be just 2
so avg book value = (250,000 + 0)/2 = 125,000
lastly
ARR = avg net profit/ avg book value = 47,778/125,000 = 38.22%
hm, i go calculate B first, i think if the ans is wad i expect, then i''ll tell u another reasonOriginally posted by joeacid:OIC GREAT!!! Thanks alot!!! i understand now! hehe
Btw, if u were to go back to my question. There's this question that holds 4 marks. Asking why shld i use the proposal. I was thinking back then...
There's no reason other than the AAR is higher and therefore more profit... but.... it carries 4 marks... is there any things u can suggest?
Btw, i'm going to do the calculation for proposal B now hehe
oh yah thanks alot!!! Gd nite!!! I'll carry on the rest myself!!! Thanks alot^^ Btw, hope to cya ard soon~ Is it alright if i email u when i hav any problem? thanks alot really... Appreciate it!!!Originally posted by laurence82:by the way, i may be logging off soon
so here is my ans
ARR for B is 26.49%
Notice that ARR is how much profits u make from investments in terms of percentage
Machine A need less investment, abt 70k less than Machine B, and have higher ARR, that is a plus point
third reason is not so obvious, just a suggestion
u'll notice that Machine B last for 12 years, so if u consider time value of money, the longer the time, the bigger the present value discount factor, the smaller the returns
but this got to go thru arduous calculations, so i am just suggesting..
Yup cya!!! I'm going to finish it soon to get some slp too~ or i'll be dozing off in clz tml morning haha!!!Originally posted by laurence82:oops, i put 44 as 47, silly me
yah its correct
ok then, i cya, going to catch some sleep![]()
clones not here, i question ur efficiency..Originally posted by SMAPLionHeart:clones?![]()