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Accounting Problems (0 viewing)
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Accounting Problems
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leno21 (User)
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Posts: 53
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4 Years, 2 Months ago
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testing
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Last Edit: 2008/01/13 17:07 By leno21.
Reason: testing
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4 Years, 2 Months ago
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depending on how you want to calculate. strictly speaking return is calculated to the days and extrapolated to p.a. in which case q2 n q3 returns better than q1. i ve not done a specific cal on q2 n q3 so off hand, therefore cannot tell which offers better return. as cost commitment is later in q3 i hazard that q3 returns better than q2. i failed your test?
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4 Years, 2 Months ago
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Time-Weighted rate of return might be useful for q2 and q3 where external cash flows occur.
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"Just as a man working with his tools should know its limitations, a man working with his cognitive apparatus must know its limitations"--
Charlie Munger.
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leno21 (User)
Junior
Posts: 53
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4 Years, 2 Months ago
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testing
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Last Edit: 2008/01/13 17:12 By leno21.
Reason: testing
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leno21 (User)
Junior
Posts: 53
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4 Years, 2 Months ago
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testing
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Last Edit: 2008/01/13 17:13 By leno21.
Reason: testing
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4 Years, 2 Months ago
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hi Leno, i once taught internal rate of return on project evaluation for short term decision making. that's over 30 years ago. glad that my guts feel is still with me. i had a hard time recalling the different approaches to the definition of irr. but i think vaguely, the economic definition is the most appropriate vis a vis to your accounting approach. accounting attempts to breach the deficiencies by eg. examples current cost accounting, replacement cost accounting methods etc.
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4 Years, 2 Months ago
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the answer to q1 is not 11.11 because you have not factored in the opportunity cost. what is your opportunity cost? yours would be different from mine.
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4 Years, 2 Months ago
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"Two things are infinite: the universe and human stupidity; and I'm not sure about the universe" Albert Einstein
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4 Years, 2 Months ago
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and the right brain is as important as the left brain for this market thing we all all involved with here.
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leno21 (User)
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4 Years, 2 Months ago
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testing
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Last Edit: 2008/01/13 17:14 By leno21.
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