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Management Accounting
Willie Seal, University of Essex, UK
Ray Garrison, Brigham Young University, Provo, Utah, USA
Eric Noreen, INSEAD, France

Segment Reporting and Decentralization

Internet Exercises

www: IE14-37 Use the Google search engine to find information about how much companies spend on capital investments. Choose companies from different sectors and compare their policies and strategies. Summarise the differences between the companies selected.

IE15-19 An Alternative Approach to Determining After-Tax Cash Flows The General Services Administration, an agency of the federal government, has prepared a documented titled "An Analytical Framework for Capitol Planning and Investment Control for Information Technology." This document explains capital budgeting and it can be viewed on the Web at http://www.itpolicy.gsa.gov/mke/caplan1.mhtml. Find Exhibit 3 that shows the annual cash flows for Hypothetical Corporation/

1. How does the method for computing the annual net cash flow on this web page differ from the method used in this text?

2. Using the basic data for Hypothetical Corporation, compute the annual net cash flows using the method from the text. Does there appear to be a mistake in the way the working capital has been treated in Exhibit 3 on the web site?