Management Accounting

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1MANAGEMENT ACCOUNTING
Table of Contents
Part A:..............................................................................................................................................2
Requirement a:.............................................................................................................................2
Requirement b:.............................................................................................................................3
Requirement c:.............................................................................................................................3
Requirement d:.............................................................................................................................3
Requirement e:.............................................................................................................................5
Part B:..............................................................................................................................................8
Requirement a:.............................................................................................................................8
Requirement b:...........................................................................................................................10
References:....................................................................................................................................12

2MANAGEMENT ACCOUNTING
Part A:
Requirement a:

3MANAGEMENT ACCOUNTING
Requirement b:
Requirement c:
Requirement d:
For analysing the suitability of the project in the context of Benetton Plc, the methods of
investment appraisal include net present value, payback period and internal rate of return. In this
case, payback period is calculated as 2.08 years and the economic life of the project is five years.
However, it is noteworthy to mention that payback period is not effective for evaluating two
projects having unequal economic lives. Hence, it becomes difficult to undertake investment
decisions based on the payback period of the project only. However, as the concerned
organisation has to evaluate one project only, this method could be applied and it is evident that