Managerial Accounting Decisions

Managerial Accounting Decisions

Managerial Accounting Decisions

Introduction

The paper enlightens the concept of decisional accounting as it applies to investment appraisal in a holistic context. It attempts to present the case of Deer Valley Lodge, which is a ski resort in the Wasatch Mountains of Utah. The paper focuses on the profitability of Deer Valley Lodge in installing five new chairlifts considering the investment costs, installations costs, other hidden costs and the demand or utilization of the five new chairlifts. The paper analyzes the case by applying the net present value (NPV) technique in a before-tax as well as after-tax scenario. It ...