Accounting for Decision Making: David & Anna's Property Report

This report, prepared for an Accounting for Decision Making module, presents a comprehensive analysis of a couple's (David and Anna) property investment options in London. It begins with an introduction to decision-making processes, followed by a summary of the couple's property requirements, including their need for a 2-bedroom house with a garden and parking, considering their work locations and lifestyle. The report then provides a detailed overview of the current London real estate market, highlighting the impact of Brexit and the COVID-19 pandemic on property prices and investment trends. The core of the report focuses on financial decision-making, applying capital budgeting techniques, particularly net present value (NPV), to evaluate the financial viability of renting versus buying a property. The financial analysis includes a cash flow analysis to determine the present value of their savings and the financial implications of each option. The report concludes by emphasizing the importance of financial decision-making in achieving long-term financial goals, and how effective capital budgeting can help individuals make informed decisions regarding property investments. The report also includes references to relevant academic sources to support the analysis.

ACCOUNTING FOR DECISION
MAKING
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Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Brief summery regarding the requirements of property ........................................................3
Detail summery regarding the current situation of real state market of London....................3
Decision making related with property of David & Anna.....................................................4
Financial analysis report of property......................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7
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INTRODUCTION
Decision making is the procedure through which personals identify best alternative and on
the basis of that they take decision for choosing best alternative. To understand this concept,
report has been formulated. It stat the research analyse of real state sector and on the basis of that
David and Anna take decision whatever they rent or buy house. This report also define way
though which they able to take decision regarding their alternative.
Task 1
Brief summery regarding the requirements of property .
David and Anna both are working couple , David work as business consulted and Anna is
engaged with her academic profession. They want to settle down in a house which have large
area in Greater London. Anna wants to invest in property where they found large garden as well
as parking area for their vehicles as they decided to purchase car . They want a house of 2
bedrooms and large area of dinning and guest room. David is work as business consulted in
Central London thus he need to go for 2 or 3 days for their work thus they need car so they can
easily travel from Greater London to Central London. Due to the effect of Corona they need to
choose the area in Greater London where they can easily find facility of hospitals, grocery
market. Their house must be situated in Greater London and wtihim the budgeted amount as
they don’t need to have burden of loan and purchase house which is over budget for them
(Hrasky. and Jones, 2016).
Detail summery regarding the current situation of real state market of London
Real state is sector of earning property dealer by providing properties device ad aggrment related
with house properties. UK’s real state sector has been great impact on its economic growth rate.
Before Brixit aggrment and effect of COVID – 19 this sector proved great revenue and
investment in real state useful in gerante profit for investor. But after the impact of Brixit
aggrment as well as impact of pandemic the whose structure and scenario has been change price
of property has been decline there will be no investor who ready to invest in properties due to
fallen price of shares. Splice in Greater London area. Privet of houses is high and property
dealers also suggest for dealing which useful for investor for investing and dealing in real estate
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sector. At present tie due to lockdown period price rate of share has been decline and real sector
face high loss their market decrease 5 % which directly impact on each investing property. But it
also been redacted the in upcoming 4 to 5 years prices of this market also been increases. This
will directly impact on real sector as well as economy of Britain . However rules and policies
also change since last 2 years and government apply strict rule to reduce chance of conflicts
regarding insider trading in this sector (Bonilla, Papalardo, Tassinari, Sacomano, and de
Carvalho, 2019).
Decision making related with property of David & Anna
Financial decision making is the procedure though which personals select.
Financial analysis help in taking decision regarding best alternative in this case debit and
Anna need to choose property or whether the need to live in rent house they need to take
decisions regarding their future policies so they can able to give their like in effective way by
using Management Accounting techniques they are able to take decision regarding which
alternative is best for them financial statements are those statement which are formulated for
identifying profit and loss as well as balance sheet on the basis of that managers are able to
formulate or generate take decision regarding best alternative the use capital budgeting
techniques through which they can able to to take decisions in this case present value has been
used to identify to take decision with whether to rent or purchase a new house dividend pay na
able to 50000 per month it is there saving income bye calculating present value it has been found
that they can able to generate307200 on the basis of this analysis it has been recommended that
by calculating net present value organisation able to generate effective rate of return this will
help in improving their future business strategies as well as living standard taken in Greater
London is really expensive when they also had travelling expenses but 802 to saving David and
Anna able to incurred these expenses present net value help in recognising for evaluating
financial performance of every alternative this is the most reliable and accurate method of
capital budgeting which useful in taking effective decisions by the use of this technique debit can
able to to understand that the written value of their investment the recognise it is the most useful
strategy as it considered time value which help in taking the best decision
Years
Cash
inflow 10% Amount
1 50000 0.909 45450
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2 50000 0.826 41300
3 50000 0.751 37550
4 50000 0.683 34150
5 50000 0.62 31150
6 50000 0.564 28200
7 50000 0.513 25650
8 50000 0.466 23300
9 50000 0.424 21200
10 50000 0.385 19250
307200
Financial decisions making is essential strategy with help in taking the best alternative
decisions regarding with profit everything it is a duty of investor to use financials capital
budgeting technique to which day can able to take best alternative decision which help in
pertaining a generic properties this is also helping providing diseases regarding with investment
and finding out this in each alternative by applying these type of those managers able to take
messages anybody organisation in this case David in unable to take decision on the basis of
finding out and understanding that present decision they also newspaper period as well as
internal rate of return through with take care able to finding out accuracy of the year that present
value result David is a business consultant done on the basis of the year professional they are
able to understand the meaning and then you of investment does the need to take decision to with
take enable to generate properly which is beneficial for their pictures life (Elmassri, Harris, and
Carter, 2016).
Financial analysis report of property
Financial analysis is the procedure of identifying and leaving each and every possible
solution and opportunities with help in taking the best alternative decision regarding particular
project in this case there various possible solution for taking decision regarding buying a renting
the property David and Anna able to take decision regarding leaving in the then tell area as did
you there like 6 years and on the other side the able to purchase there on house in London if that
used decision regarding leaving in them parental house the need to surfers from many days as
well as there's a need to increase daily mantra basis of rental the need to pay house rent which is
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more than $15,000 which directly impact of then there saving as well i'll investments is the
answer need to insert text message related with light electricity water and parking expenses also
call these are expensive are increase with the changes of time the also need to in paid
maintenance expenses zoning take mental maintenance expenses in leaving house on the other
side by taking decision regarding investment in house property at great London the need to
invest use on purchasing house with effect of cove in 19 hours a list british agreement it is really
hard to take decision regarding the devil's and tauba my house however the price rate of houses
has been decline right Olympic and beneficial for this couple as as a time of investment in
properties real estate sector help in providing future benefit for this couple when they take
decision regarding buying house for dinner there is the need to face. his is the common list the
need to face then the tech decision regarding buying how does David and Anna does not have
sufficient amount to buy cheese house which value is more than there was did well you return
and that is recitation area where most of high society people named as the value of the year
house is has been time as a nest expectations of David and Anna to have this on the basis of the
year recommendation the house they want is really highway dude does the need this surfers from
high financial crisis as it is really hard at the time of panda me to take loan as the rate of interest
is high as well as they don't have any other sources of income British agreement also effect
negatively on and i shall institution assistant as the are not able to take has from any other
institution other than there's country (Krajbich, 2019).
The also faces of problem regarding with resources vendetta decision regarding buying
house the need to income anymore expenses and couldn't maintenance of houses innocent light
water all these spaces in initially by house even resources le required for maintenance and
featuring of the hose is disaster impact directly on there's savings as well as the year expenses
regarding to buy amoxicillin a car is also have so the need to face hai level of financial crisis for
you to this day papers from financial problems.
The also surfers from non financials is which include panda call natural crisis or political
race call the which is happening at the area the leadership return London which is highly
political area and any issues regarding with political parties as well as decision taken by policy i
thought is municipal parties regarding this there society can be arises the also person with natural
crisis because of the present time after panda make natural climate hasn't totally changed and this
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person mental as well ashell issues with directly impact on there savings as they wanted to
purchase house the need to pay system many problems.
There will be many issue by applying tools of financial management , David and Anna able to
attain their goals and take decision regarding purchasing of house.
CONCLUSION
From the above analysis it has been identified that financial decision making useful in
taking best alternative decision. By applying effective capital budgeting technique, personals
able to find out the research area of each and every source of UK and on the basis of using
decision making technique they take decision regarding secreting best alternative.
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REFERENCES
Books and Journals
Hrasky, S. and Jones, M., 2016, December. Lake Pedder: Accounting, environmental decision-
making, nature and impression management. In Accounting forum (Vol. 40, No. 4, pp.
285-299). No longer published by Elsevier.
Bonilla, S.H., Papalardo, F., Tassinari, C.A., Sacomano, J.B. and de Carvalho, F.R., 2019.
Contribution of the Paraconsistent Tri-Annotated Logic to emergy accounting and
decision making. Ecological Modelling, 393, pp.98-106.
Elmassri, M.M., Harris, E.P. and Carter, D.B., 2016. Accounting for strategic investment
decision-making under extreme uncertainty. The British Accounting Review, 48(2),
pp.151-168.
Krajbich, I., 2019. Accounting for attention in sequential sampling models of decision
making. Current opinion in psychology, 29, pp.6-11.
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