Managerial Accounting 2nd Edition By Charles E. Davis, Solution Manual

Managerial Accounting 2nd Edition By Charles E. Davis, Solution Manual

chapter 09

Learning Objectives

1. Identify the cash flows associated with capital budgeting decisions. (Unit 9.1)
2. Explain the time value of money and calculate present values of lump sums and annuities. (Unit 9.2)
3. Use net present value to determine the acceptability of a project. (Unit 9.3)
4. Use the internal rate of return to determine the acceptability of a project. (Unit 9.3)
5. Calculate a project’s payback period. (Unit 9.4)
6. Calculate a project’s accounting rate of return. (Unit 9.4)

Summary of End of Chapter Material

Difficulty: E = Easy, M = Moderate, D = Difficult
Bloom: K = Knowledge, C = Comprehension, AP = Application, AN = Analysis, S = Synthesis, E = Evaluation
AACSB: A = Analytic, C = Communication, E = Ethics
AICPA FN: DM = Decision modeling, RA = Risk Analysis, M = Measurement, R = Reporting, RS = Research, T = Technology
AICPA PC: C = Communication, I = Interaction, L = Leadership, P = Professional demeanor, PM = Project Management,
PS = Problem Solving and Decision Making, T = Technology
IMA: BA = Business applications, BP = Budget Preparation, CM = Cost Management, DA = Decision Analysis,
ID = Investment Decisions, PM = Performance Measurement, R = Reporting, SP = Strategic Planning

Item L. O. Difficulty Level Minutes to Complete Bloom’s Taxonomy AACSB AICPA FN AICPA PC IMA Ethics
Coverage
GUIDED UNIT PREPARATION
Unit 9.1
1 1 E 2 K A R C ID
2 1 M 8 C A DM PS ID
3 1 M 3 C A M PS ID
Unit 9.2
1 2 E 1 K A M PS ID
2 2 M 2 K A M PS ID
3 2 E 1 K A M PS ID
Unit 9.3
1 3 M 3 K A M PS ID
2 3 E 2 C A M PS ID
3 3 D 3 C, AN A M PS ID
4 3 D 4 C A M PS ID
5 4 E 3 K A M PS ID
6 4 M 2 C A M PS ID
Unit 9.4
1 5 E 2 K A DM PS ID
2 5 D 4 C A M PS ID
3 6 E 3 K A M PS ID
4 6 M 3 C A M PS ID

Item L. O. Difficulty Level Minutes to Complete Bloom’s Taxonomy AACSB AICPA FN AICPA PC IMA Ethics
Coverage
EXERCISES
9-1 1 M 12 AP A M PS ID
9-2 1 M 10-12 AP A M PS ID
9-3 2 E 8 AP A M PS ID
9-4 2 E 4 AP A M PS ID
9-5 2 M 12 AP A M PS ID
9-6 2 M 10 AP, AN A DM PS ID
9-7 3 M 15 AP, AN A DM PS ID
9-8 3 D 8-10 AP, AN A DM PS ID
9-9 3 E 8 AP A M PS ID
9-10 3 E 10 AP A M PS ID
9-11 4 E 8 AP, AN A DM PS ID
9-12 4 E 8-10 AP, AN A DM PS ID
9-13 4 M 10 AP, AN A DM PS ID
9-14 5 E 8 AP, AN A DM PS ID
9-15 5 M 4 AP A M PS ID
9-16 5 M 10-15 AP, AN A DM PS ID
9-17 6 M 10-12 AP, AN A DM PS ID
9-18 6 D 8-10 AP A DM PS ID
9-19 6 D 8 AP A M PS ID
PROBLEMS
9-20 2 D 15 AP, AN, E A DM PS ID
9-21 3 D 20-25 AP, AN, E A DM PS ID
9-22 3 M 20-25 AP, AN A DM PS ID
9-23 3 M 15 AP, AN A DM PS ID
9-24 4 M 12-15 AP, AN A DM PS ID
9-25 3, 4 D 30-35 AP, AN, E A DM PS ID
9-26 5, 6 M 20 AP A DM PS ID
9-27 3, 4, 5 D 30-35 AP, AN, E A DM PS ID
9-28 3, 4, 5 D 25-30 AP A DM PS ID
9-29 3, 4, 5, 6 M 20-25 AP, AN A DM PS ID
C&C CONTINUING CASE
9-30 1, 3 D 25-30 AP, AN A DM PS ID
CASES
9-31 3 D 55-60 AP, AN A DM PS ID
9-32 3 D 25-30 AP, AN, E E R C BA 