Assessment Task 2: individual assignment

Assessment Task 2: individual assignment

Due:Week 10 (10th May, 23:59pm)

ILOs Addressed:ILO1, 2, 3

Maximum length/format:2500 Word length (please see below for task lengths related to parts 1 and 2).

Objectives of the Assignment:

The objective of this assignment is to assist in developing practical and soft skills required by management accountants. Such skills are crucial to gaining employment and maintaining ongoing career success.

Background

Tasmania is home to some of the most breathtaking landscapes in the world, including the Tasmanian Wilderness World Heritage Area, which covers almost 20% of the state. However, tourism, especially nature tourism, is closely linked to biodiversity and the attractions created by a rich and varied environment. It can also cause loss of biodiversity when land and resources are strained by excessive use, and when impacts on vegetation, wildlife, mountain, marine and coastal environments, and water resources exceed the carrying capacity. This loss of biodiversity means a loss of tourism potential.

Therefore, sustainable tourism practices are becoming increasingly crucial to ensure the preservation of this precious environment. It is important to understand what sustainable tourism is and how it can be achieved while balancing industry growth and conservation efforts. Sustainable tourism is a concept that seeks to minimize the impact of tourism on the environment. It involves responsible travel behaviour that conserves natural resources, respects local cultures, and supports local economies. In Tasmania, sustainable tourism is particularly important due to the fragility of its environment and unique flora and fauna.

The scenario presented in this task mirrors real-life business decision-making processes and centres around the United Nations Development Sustainability Goal 15, which focuses on protecting, restoring, and promoting the sustainable use of terrestrial ecosystems. The case study underscores the pivotal role that Higher Education institutions play in achieving Sustainable Development Goals (SDGs). This case aims to empower students to drive positive change and contribute to a better future for society and the planet.

Additionally, this assessment aligns with other SDGs beyond Goal 15, such as SDG 8 (Decent Work and Economic Growth) and SDG 13 (Climate Action). It emphasizes the importance of economic and ethical decision-making to balance between human needs and nature's needs to achieve sustainability. Ethical decisions, prioritizing inclusivity, social well-being, and ecological sustainability can foster stronger community cohesion, protect the environment, reduce disparities, and improve the quality of life for all.

However, merely adhering to economic requirements without considering ethical dimensions may not always lead to ethical outcomes. Economic actions driven by self-interest can perpetuate social and ecological injustices, reinforce inequalities, and exclude marginalized groups from opportunities. Therefore, finding a balance between self-interest and public interest is crucial for ensuring sustainable and equitable solutions that genuinely benefit society and the environment and contribute to broader goals, such as achieving the SDGs.

What you are required to do

The task requires you to use appropriate and correct computational analysis using Excel to reflect your expertise in the use of Excel in the evaluation of the situation and conducting calculations to support your findings. Findings and associated recommendations are required to be presented in the form of a professional report advising companies and managers about how your recommendations can assist companies in better planning and creating a sustainable society and planet.

PART 1_ Written report of approximately 1,500 words, accompanied by an Excel worksheet.

Then, in a separate submission:

PART 2_ Discussion of ethical and legal decision-making, and their long-term implications (1,000+/-10% words): in this part,you need to discuss any ethical, social, environmental, or/and economic issues involved in the project, which may affect Tasmania, in the long run.

Case Study: balance human and natureneeds

Tasmania boasts some of the most breathtaking landscapes globally, with the Tasmanian Wilderness World Heritage Area encompassing nearly 20% of the state's territory. Mary, a devoted advocate for environmental conservation residing in Tasmania, has made a bold decision to repurpose her farm into a tourist resort. Nestled in a remote locale near the West Coast, Mary's farm enjoys a stunning setting overlooking the water and is adjacent to natural bushland teeming with wildlife and biodiversity. Accessible only via a lengthy gravel driveway, the farm lacks any paved roads.

With an expansive land area of 10 hectares at her disposal, Mary has chosen to invest in 10 luxurious tents complete with shared bathroom facilities and a generously sized communal kitchen. These tents promise guests a distinctive and immersive experience amidst nature's splendour, allowing them to reconnect with the environment while indulging in modern comforts.

Converting a farm into a tourist resort is no small endeavour and entails various costs contingent upon factors such as tent size and construction materials. Mary has diligently consulted with professionals to assess the financial implications of her project. Based on her consultations, here is a comprehensive breakdown of the estimated costs Mary might expect to incur:

Tent Procurement:The cost of purchasing luxury tents, including consideration for their size, quality, and features, typically ranges from $1,500-$3,000 per tent.

Infrastructure Development:Expenses related to setting up necessary infrastructure such as building bathrooms, installing plumbing and electrical systems, constructing the communal kitchen, and other facilities required for guest accommodation. The cost of these can vary significantly, based on the specific requirements of the project, but typically range from $20,000 to $50,000.

Site Preparation:Costs associated with preparing the site for the installation of tents and infrastructure, including clearing land, levelling terrain, and ensuring proper drainage around 25,000-$30,000.

Permitting and Regulatory Compliance: Fees for obtaining permits and licenses required for converting the farm into a tourist resort, as well as any expenses associated with meeting building codes and safety regulations. She may need to obtain permits from local authorities, which can cost at least $1,000.

Utility Installation:Expenses for connecting the resort to utilities such as water, electricity, and sewage systems, including installation and hookup fees 415,000-$25,000.

Furnishings and Amenities:Costs of furnishing the tents and communal areas with furniture, bedding, and other amenities to ensure guest comfort. This is about 1000-1500 per tent.

Marketing and Promotion:Budget for marketing and promoting the resort to attract guests, including website development, advertising campaigns, and promotional materials. This is 500 a year.

Operating Expenses:Estimates for ongoing operational costs such as staff wages (5 staff days, 8 hours a day, $25/ hour), maintenance (500 a month), utilities ($1000 every three months), and insurance (1200 a year).

Professional Fees:Fees paid to consultants, architects, engineers, and other professionals involved in the planning, design, and implementation of the project ($10,000-$15,000).

Tax rate: ???

She currently has $35,000 in her bank account and is open to obtaining a bank loan if necessary.

Mary's vision for the resort aligns closely with her commitment to sustainability and eco-conscious practices. By repurposing her farm into a tourist destination, she aims to promote environmental awareness and appreciation among guests while minimizing the ecological footprint of the venture.

Through careful planning and strategic development, Mary envisions creating a serene retreat where guests can immerse themselves in nature's beauty while contributing to the preservation of the surrounding environment. Her decision to embrace eco-friendly accommodation options reflects her dedication to responsible tourism and sustainable development.

As Mary embarks on this new journey, she looks forward to welcoming guests to her eco-resort and sharing her passion for the environment with like-minded individuals seeking a unique and environmentally conscious travel experience.

Note: to ensure the expenses are both manageable and realistic within Mary's budget, it is recommended to utilize either the minimum or average cost ((Minimum value + Maximum value) / 2) using the Australian data available online

The structure of the assessment:

PART 1: Professional Business Report Utilizing Excel Data.

As an accountant working for a reputable accounting firm in Tasmania, you have been approached by Mary to evaluate the feasibility of her projects, in a formal business report. In this report, you will need to address the following questions, taking into account the background information provided and assuming that the city council regulations allow Mary to convert part of her farm into tourist resort accommodation.

What government grants or financial support might be available to help fund the project, and how can these be accessed?

What is the total cost of the tourist resort conversion project, including any costs associated with obtaining a council permit?

Will Mary need to borrow money from the bank, and if so, how much? What is the current interest rate on a loan for home improvements?

Is there any other annual cost associated with running the tourist resort, which Mary needs to consider?

How much rent could she charge for this type of accommodation, in the current market, and what is her potential income from the accommodation?

What is the break-even point for the projects?

What is the payback period for the conversion projects?

Assuming Mary has expressed her desire to recover the conversion costs within three years, what is the minimum rent she needs to charge her tenants to accomplish this goal? Is it feasible to achieve this target in the current, competitive, environment?

What is the net present value (NPV) of the projects?

Note:

If you have any further questions, please feel free to contact Mary, directly, by posting your question in the group chat on MyLO. Mary will respond to your question/s within two days.

To complete Part 1:

you will need to conduct market research to gather all the relevant information that is not provided by Mary;

you must submit two separate files: an Excel file, and a Word file.

for the Excel worksheet, we have not provided a specific layout, so you have the flexibility to design it according to your preferences. However, we recommend that you keep it organized and easy to follow for the markers.

your report (in Word file) should have four sections: Executive summary, Introduction, Main Body, and Conclusion and Recommendations. For more information on how to write a good report, clickhere, and for a good executive summary, clickhere.

your report must be typed, in 12 font size, with a 1.5 line spacing, and 2.5 cm margins, on all sides. The maximum word count should be1,500 wordsexcluding the reference list and any appendix/ices). State your word count at the beginning of the assignment. All the academic resources that are used in compiling your report should be referencedin your report,usingHarvard style.

YOU MUST NOTcopy and paste .jpg and other image files into your Word document, to circumvent the word count, or you will be penalised. Reference your Excel workbook, rather than copying and pasting tables and diagrams into your written report (e.g., see Table 1, Worksheet 3).

the report and accompanying spreadsheet will be marked simultaneously and strictly according to the rubric supplied.

under no circumstances should you share your assessment with another student/other students. This would constitute academic misconduct. All similarity reports on Turnitin will be thoroughly checked, and if plagiarism is suspected, disciplinary action will be taken.

an electronic copy of your assignment needs to be submitted to the BFA312 MyLO Assignment 2 dropbox, by the due date and time (Check MyLO for these).

PART 2: Discussion of Ethical, economic, and Legal Decision-Making, and Their Long-Term Implications

In a separate Word document, you will explore the ethical and legal aspects of Mary's project about tourism and biodiversity in Tasmania. Your response should be within the range of 900 to 1100 words and must cover the following areas:

Question 1: Understanding Ethical, economic, and Legal Decision-Making in Mary's Project:

In your exploration of Mary's project and its relation to the Tasmanian ecological system, discuss the concepts of 'economic decision-making,' 'ethical decision-making,' and 'legal decision-making.' How do these principles apply to Mary's specific project? Consider the importance of adhering to legal requirements and regulations, as well as the ethical implications of her decisions and actions. Provide concrete examples to illustrate the intersection of legal compliance, ethical, and economic considerations in her project.

Question 2: Unravelling the Adverse Effects of Legally Endorsed Decisions on Communities:

Examine the significant adverse effects that decisions and actions legally endorsed in Mary's project may have on communities, with particular attention to environmental, social, and economic aspects in the long term. Draw from in-depth research into tourism and biodiversity in Tasmania to provide concrete examples illustrating how legal and economic compliance may not guarantee positive long-term outcomes. Analyse the potential consequences of disregarding ethical considerations in development projects and explore sustainable alternatives that foster community well-being.

How your work will be assessed:

This assessment is worth 35% of the final grade for this unit. The assessment will be graded out of 35points according to the marking criteria. Please ensure you have followed the instructions and have included all the relevant parts. The rubric shows the distribution of marks and performance expectations, and should be read carefully before starting the assignment. Some elements may be weighted more highly than others. Carefully review what each criterion is asking you to do, and what is required for each level of the rubric (High Distinction, Distinction, Credit, Pass, or Fail).View the rubric by pressing Assessments > Assignments and clicking the assignment box name .

How to submit your work:

Submit your completed work electronically, by the due date and time, to the dedicated assignment box, under Assessments > Assignments in this unit.File type required: Word & Excel.If you require instructions on how to submit your assignment, visit the Student Guides link in the Get Help Here folder.

Checklist before Submission:Before submitting your assignment, ensure you've:

Carefully read the Task Description, and raised any questions with your Unit Co-ordinator;

Reviewed the marking rubric;

Resources

Profitability

Which Type of Airbnb Rentals are Most Profitable:https://www.youtube.com/ watch?v=7cEIOsFHJikProfitable Properties: Airbnb Insider Secrets to STRs:https://www.youtube.com/ watch?v=PW10vPEJndk

Sustainability

The impact of Airbnb and Stayz on Australia's housing crisis - video:https://shorturl.at/notNR2. Tourism v Forestry: Businesses say native forest logging is hurting Tasmania's brand - video:https://www.youtube.com/watch?v=Szsanuia878Excel functions

Excel for Beginners: https://www.youtube.com/watch?v=wbJcJCkBcMg

Top 20 Microsoft Excel Tips:https://shorturl.at/optQWCapital Budgeting: NPV, IRR, Payback:https://www.youtube.com/watch?v=7gG0Evugubo

Break-even analysis in Excel:https://www.youtube.com/watch?v=1BDLh1jbB7U

Real Estate website

Internationally: realestate.com website:https://www.realestate.com.au/