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Unit 7 Discussion Question 1

Unit 7 Discussion Question 1
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MT425 / MT 425
Managerial Finance and Accounting
Kaplan University (KU Campus)

James Jiambalvo
Managerial Accounting, 4e
Hoboken, NJ: John Wiley & Sons.

Unit 7: Capital Budgeting and Other Long-Run Decisions

Unit 7 Discussion Question#1
This discussion exercise brings you to a web page displaying a management accounting case study published for learners by the Institute of Management Accountants (IMA). Read the following: Case 1: Figure 8 Homeowners Association Case and use the information to address the associated discussion question.

Which capital budgeting analytical techniques should be used to evaluate the Figure 8 Homeowners' Association Case? How should costs be allocated between landowners, and why do you think this allocation is best? What are the relevant costs involved with each alternative? How do you plan for estimates for costs that are not firm?



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