PRJM6001- Cost Management- Accounting Assignment

Internal code- MAS625

Accounting Assignment

Questions- You are contemplating the purchase of a new SUV for family use. You are to choose a new model and perform a Life Cycle Costing calculation using the Net Present Value method to determine its life cycle costs, over a period of 6 years. The vehicle is NOT to be purchased by leasing or by loan. As the SUV is for private use only you should ignore any tax implications in your life cycle costing, but must consider the resale value. As a minimum you must provide the following information: - a detailed description of ALL your assumptions - a detailed explanation and breakdown of all costs and values used in your costing (do NOT use published all-inclusive rates per kilometre for running expenses) - sources for ALL the data used. - a comprehensive explanation for your choice of discount rate and method for handling inflation The assignment is to be presented in the form of a report