M6A1 Essay Example | Topics and Well Written Essays - 500 words

M6A1 - Essay Example †¨Provide guidelines supported by evaluative tools, such as NPV, IRR, MIRR, payback, and breakeven analysis. †¨Identify the most appropriate methods for comparing projects of different sizes. It also takes knowledgeable accountants and actuaries who can actually predict the financial success or failure of a project based on financial information. Therefore, it is of utmost importance that the accountant understand the real costs and opportunity costs of any investments before decisions are made about where to invest and when to invest. Of course, one always wants to make sure that one is on the right side of the market. If it is a bear market, one wants to sell short. If it’s a bull market, one wants to invest in financial exploits which will benefit the company financially. and utilized efficiently by the operations management team. That is why it is so important that one make sure one sticks to a consistent plan that will help one be able to analyze the various ways that projects might be carried out. For this, one needs a reliable team—and the accountant is a linchpin in helping an organization decide how to best proceed with the plans that they are ready to carry out. Of course, working with such a team is an important part of ensuring the project is a financial success. projects is crucial. Everyone knows that good project management, therefore, makes certain that a budget is in place to deal with any problems that may come up. So, not only does the accountant want to provide the customer with adequate information about how well a projected project is going to succeed. It’s also of premier importance that there is some sort of consistency in the organization in terms of financial organization so that it can weather difficult times, such as in a lagging economy. There are several methods available for analyzing cash flow. According to Fabozzi and Peterson (2003), â€Å"Cash flows are evaluated using NPV†¦IRR, MIRR,