Management Accounting Application
Case Analysis 1 – Weight 20% of total assignment
You work for a small, local telecommunications company. In five years, the company plans to undertake a
major upgrade to its servers and other IT infrastructure. Management estimates that it will need up to
$450,000 to cover all related costs; however, as a fairly young company, the goal is to pay for the
upgrade with cash and not to take out loans.
Right now, you have $300,000 in a bank account established for Capital Investments. This account pays
6% int... More