2016年ACCAF9《财务管理》重要知识点讲解

2016年ACCAF9《财务管理》重要知识点讲解（2）ACCA考试F9内含报酬率法InternalRateofReturn(IRR)methodOftenanentitywouldwanttoestablishitsinternalrateofaprojectforvariousreasonse.g.,fordecision-makingpurposes.ByIRRwemeanaratethatwillbeusedtodiscountfuturecashinflowstomakethetotalofthepresentvaluesequalthecostoftheproject.TheattemptbeingmadeunderIRRistofindaratethatwillequatetheNPVofaprojecttobezero.TheIRRthereforeisthemaximumrateofdiscountthatwillbeusedtofinanceaprojectwithoutmakingalossfromit.Againinamutuallyexclusivesituation,theprojectthathasthehighestIRRistheonetorecommend.ThereasonbeingthattheIRRisshowingthehighestratethatcanbeusedtofinanceaprojectwithoutincurringalossfromit.StudentsoftensuggesttotheauthorthattheIRRshouldbecalledthebreak-evenrate.Hisreplytothemisoften,ifthismakesyouunderstandIRRyoushouldusethattermforit.InordertofindtheIRRmanually,thisisdonebythetrialanderrorapproach.BythiswemeanusingadiscountratewhichgivesapositiveNPVandanotherratewhichgivesanegativeNPV.Thenapplytheformula:IRR=A+ax(B?A)a+bWhere:A=ThelowerdiscountratewhichgivesthepositiveNPVB=ThehigherdiscountratewhichgivesthenegativeNPVa=ThevalueofthepositiveNPVb=ThevalueofthenegativeNPVPleasenotethataandbshouldbeaddedtogetherasthenegativesigninbisignored.NowletusdemonstratethesevariousmethodsusingacasefromafictitiouscompanyweshallcallAICOPlc.CaseSeniormanagementofAICOPlchaveidentifiedthatthereisastrategicneedforareplacementmachinetobeacquiredinoneoftheirproductiondepartments.Theyhavetomakeachoicebetweentwomodelsofthemachine?model1iscalledSuperandmodel2iscalledDeluxe.Theyareunsureastowhichofthetwomodelstheyshouldbuy.Theyhavegivenyouthefollowingprofilesofthetwomodels.Theywantyoutousethefourinvestmentappraisaltechniquesdiscussedabove.Youarerequiredtorecommendwhichofthetwomodelsisbetterundereachappraisaltechniqueandtoexplainbrieflywhyyouhaverecommendedoneinplaceoftheothersundereachtechnique.Youaretoldthatfundsareonlyavailableforonlyonemodel.Thecostofcapitalis12%andAICOdepreciatesallitsfixedassetsonthestraight-linebasis.BycostofcapitalismeantwhatitcoststoraisetherequiredfinancefortheprojectBackgroundThereisnounequivocaldefinitionofwhatismeantbyanSME.McLaney(2000)identifiesthreecharacteristics:1.firmsarelikelytobeunquoted;2.ownershipofthebusinessisrestrictedtofewindividuals,typicallyafamilygroup;and3.theyarenotmicrobusinessesthatarenormallyregardedasthoseverysmallbusinessesthatactasamediumforself-employmentoftheowners.However,thistooisanimportantsub-group.ThecharacteristicsofSME’scanchangeasthebusinessdevelops.Thus,forgrowingbusinessesafloatationonamarketlikeAIMisapossibilityinordertosecureappropriatefinancing.Infact,venturecapitalsupportisusuallypreconditionedonsuchanassumption.TheSMEsectorisimportantintermsofcontributiontotheeconomyandthisislikelytobeacharacteristicofSME’sacrosstheworld.AccordingtotheBankofEngland(1998),SME’saccountedfor45%ofUKemploymentand40%ofsalesturnoverofallUKfirms.ThissituationissimilaracrosstheEU.FuturedevelopmentsmeanthattheimportanceoftheSMEsectorwillcontinue,ifnotdevelop.Thegrowthinsmall,newtechnologybusinessesservicingparticularmarketsegmentsandtheshiftfrommanufacturingtoserviceindustries,atleastinWesterneconomies,meansthateconomiesofscalearenolongerasimportantastheyoncewereand,hence,thenecessityforscaleinoperationsisnolongeranimperative.Weknow,also,thatinnovationflourishesinthesmallerorganisationandthatthiswillbeanimportantcharacteristicofthebusinessinthefuture.回收期法PaybackmethodSuperModelCost￡500,000YearCashinflowsAccumulatedCashinflows1250,000250,0002100,000350,0003100,000450,000450,000500,000PaybackPeriod=4yearsDeluxeModelCost￡800,000YearCashinflowsAccumulatedCashinflows1150,000150,0002200,000350,0003250,000600,0004100,000700,0005100,000800,000Payback=5yearsBycomparingfouryearsforthesupermodelwithfiveyearsforthedeluxemodel,onewouldrecommendAICOPlctobuytheformer,asitspaybackperiodisshorterthanthelatter.TheAccountingRateofReturnTheinformationprovidedbyAICOplcisbasedonhypotheticalcashflows.ThisinformationisinsufficientforestablishingtheARRofthetwomodels;thereforeitwillbenecessarytocalculatetheannualdepreciationfiguresforthetwomachines.Toarriveattheannualaccountingprofitswillnecessitateadeductionfromeachyear,snetcashinflows,theannualdepreciationfigure.SupermodelDepreciationperannum=CostlessscrapvalueLifeofmachine=￡500,000less20,0006=￡80,000perannumDeluxemodelDepreciationperannum=￡800,000less80,0006=￡120,000perannumNowthatwehavecalculatedtheannualdepreciationforeachmachine,letusestablishtheannualaccountingprofitorlossforeachmachine.SupermodelYearCashinflowlessDepreciation=AccountingProfit/(Loss)1250,000?80,000=170,0002100,000?80,000=20,0003100,000?80,000=20,000450,000?80,000=(30,000)5150,000?80,000=70,0006100,000?80,000=20,000Totalaccountingprofit270,000Thereforetheaverageaccountingprofit=￡270,000_______6=￡45,000AverageCapitalEmployed=￡500,000+20,0002=￡260,000ARR=45,000x100260,000=17?30%DeluxeModelYearCashinflowlessDepreciation=AccountingProfit/(Loss)1150,000120,000=30,0002200,000120,000=80,0003250,000120,000=130,0004100,000120,000=(20,000)5