![2018 569 Question 2 2 1 The total captal investment for the project is R 18 milion The working capital is R 3 million The fixed capital investment will be depreciated linearly over 10 years A savage value of 5% of the fixed capital investment is anticipated The capacity of the plant is 375 000 tons/day The seling pnce of the product is R 0 2/ton The fixed operating cost is estimated to be 10% of the fixed capital investment The vanable cost amounts to R 0 11/ton The plant operates for 320 days per year If the tax rate is 40%, determine the after-tax ROI wh Please pay attention to units) (12) 2 2 An existing plant consumes large amounts of water, which need to be treated after use It is proposed to retrofit the plant in order to reduce the water usage and subsequently the cost Three different designs have been proposed as shown in the table below 8 Total installed cost, $ 400 000 Operating cost, $/year20 000 600 000 720 000 35 000 40 000 155 000 245 000 293 000 An 18 % return is requred on any investment and assets are written orr treaty over 6 years Use the incremental returns method to decide which of the three options you would recommend (10) TURN OVER]](http://img.homeworklib.com/questions/04b1b5b0-6e26-11ea-8793-f77f5d2de433.png?x-oss-process=image/resize,w_560)
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2018 569 Question 2 2 1 The total captal investment for the project is R 18...
Question 1(a): Jamil Electronic Company manufactures a component for Autonomous Underwater Vehicle AUV. Significant Variable overhead...
Question 1(a): Jamil Electronic Company manufactures a component for Autonomous Underwater Vehicle AUV. Significant Variable overhead cost, fixed cost and the sales revenue amount are computed in monthly basis. Determine the following: The breakeven point for this monthly operation (ii) The margin of safety. Table Q1 Item Seling Price (OMR) Amount 50 8 Labor cost per unit (OMR) Material cost per unit (OMR unit) Variable overhead (OMR) 16 1871 Fored (OMR) Sales Revenue (OMR) 10,989 73,097 Question 1b): Marketing research...
Chap 12- Handout 1 12.2 Analysis of an Expansion Project Fxed Asset Purchase + Investment in...
Chap 12- Handout 1 12.2 Analysis of an Expansion Project Fxed Asset Purchase + Investment in NOWC SALES COGS DEP EBIT SALES COGS DEP SALES Opportunity Cost Total Initial Outiay NOPAT-EBIT NOPAT . EBIT(1M NOPAT-EBTan NOPAT DEP OCF NOPAT + DEP OCF NOPAT + DEP OCF Cthr OCF Recoup NOwc +ATSV Total Teminal CF FCF Timeline Terminal Year FCFs Total Terminal CF FCFo Total initial 0. You are to evaluate an expansion project for your firm. Last year, the firm...
Introduction You are hired to evaluate a water project as an investment project. The activity includes...
Introduction You are hired to evaluate a water project as an investment project. The activity includes the production and sales of water to a small town. A local source of water is available and the production costs are fixed. The price of water is regulated and therefore stays constant over time. The investor will only need to purchase the equipment, operate the plant, and then pass the license back to the local municipality. Task 1 Follow the steps below to...
answer Comparison of Capital Budgeting Methods 1. Determine the payback period for an investment 2. Evaluate the acceptability of an investment project using the net present value method 3. Eval...
answer
Comparison of Capital Budgeting Methods 1. Determine the payback period for an investment 2. Evaluate the acceptability of an investment project using the net present value method 3. Evaluate the acceptability of an investment project using the internal rate of return method. 4. Compute the simple rate of return for an investment FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW LEH Sign In в r u . B- 5- Number Formation 1 Format as Styles. Alignment Cells Editing...
Problem 2 A proposed process (see table below) has a lifetime of 10 years and a...
Problem 2
A proposed process (see table below) has a lifetime of 10 years
and a total fixed capital investment of $60 million (to be
committed in equal parts over years 0 and 1). Just prior to startup
(end of year 1), a working capital of $25 million is required.
Projected annual revenues and operating expenses yield an annual
pre-tax cash flow of $50 million, however the plant is projected to
operate at 50% capacity in year 2. The 5-year...
Question 4 (30 marks) The following represents the financial statements of Cash Smart (Pty) Ltd. Use...
Question 4 (30 marks) The following represents the financial statements of Cash Smart (Pty) Ltd. Use the information contained therein and other information provided to answer the questions that follow: Statement of Comprehensive Income for Cash Smart (Pty) Ltd for the year ended 30 June 2020 R'000 95 576 62 000 33 576 6 000 39 576 Sales revenue Cost of sales Gross profit Other operating income Gross operating profit Operating expenses Operating profit Financing costs Profit before taxation Taxation...
Digital Bhd Balance Sheet as o' 31 D,cember 2017 2018 milion) nillion) million Cash 300 Fixed ass...
How to do question (b)?
Digital Bhd Balance Sheet as o' 31 D,cember 2017 2018 milion) nillion) million Cash 300 Fixed assets Fixed assets at cost 1.566 (610 2,373 2,718 Acoumulated depreciation Total Assets 6)1.135 1.250 2,055 2.635 Current liabilties Accounts payable Other aceruas Long-term Liablities 10% Debentures de 2000 Total Liabilities 81 20 30 1,000 1,764 701 1,361 Shareholders Equity Common stock, RM 1 par, 100.000,000 shares issued and outstand 100 105 2,535 100 105 344 1,250 Share Premium...
2 16 RDD 71% je QUESTION 1 (20 MARKS) P. Gumede is the proprietor of PG...
2 16 RDD 71% je QUESTION 1 (20 MARKS) P. Gumede is the proprietor of PG Stores. He commenced trading on 01 March 2017. At the end of the second year of trading, his bookkeeper resigned unexpectedly and Mr Gumede found that the financial statements for the year ended 28 February 2019 were incomplete. He requires your assistance in completing them. The pre-adjustment trial balance, adjustments and additional information that were extracted from the accounting records as at 28 February...
Problem 1 Tallahassee Clinic projected the following budget information for 2018: Total FFS Visit Volume 90,000...
Problem 1
Tallahassee Clinic projected the following budget information
for 2018:
Total FFS Visit Volume
90,000 visits
Payer Mix:
Blue Cross
40%
Celtic Insurance Company
60%
Reimbursement Rates:
Blue Cross
$25 per visit
Celtic Insurance Company
$20 per visit
Variable Costs – Resource Inputs:
Labor
48,000 total hours
Supplies
100,000 total units
Variable Costs – Input Prices:
Labor
$25 per hour
Supplies
$1.50 per unit
Fixed Costs (overhead, plant, and equipment)
$500,000...
Question 1, 2 and 3 GIVEN INFORMATION FOR QUESTIONS 1-3 The financial information below pertains to Notsonice CC. The information was prepared by the Close Corporation's accountant. The me...
Question 1, 2 and 3
GIVEN INFORMATION FOR QUESTIONS 1-3 The financial information below pertains to Notsonice CC. The information was prepared by the Close Corporation's accountant. The members of the Close Corporation are considering hiring a more suitable accountant as the statement of financial position never balances. EXTRACT OF BALANCES OF NOTSONICE CC AS AT 31 JULY 2019 Member's contribution: Not Member's contribution: So Member's contribution: Nice Land and buildings at cost Furniture and equipment at cost Accumulated depreciation:...
Question 1(a): Jamil Electronic Company manufactures a component for Autonomous Underwater Vehicle AUV. Significant Variable overhead cost, fixed cost and the sales revenue amount are computed in monthly basis. Determine the following: The breakeven point for this monthly operation (ii) The margin of safety. Table Q1 Item Seling Price (OMR) Amount 50 8 Labor cost per unit (OMR) Material cost per unit (OMR unit) Variable overhead (OMR) 16 1871 Fored (OMR) Sales Revenue (OMR) 10,989 73,097 Question 1b): Marketing research...
Chap 12- Handout 1 12.2 Analysis of an Expansion Project Fxed Asset Purchase + Investment in NOWC SALES COGS DEP EBIT SALES COGS DEP SALES Opportunity Cost Total Initial Outiay NOPAT-EBIT NOPAT . EBIT(1M NOPAT-EBTan NOPAT DEP OCF NOPAT + DEP OCF NOPAT + DEP OCF Cthr OCF Recoup NOwc +ATSV Total Teminal CF FCF Timeline Terminal Year FCFs Total Terminal CF FCFo Total initial 0. You are to evaluate an expansion project for your firm. Last year, the firm...
answer
Comparison of Capital Budgeting Methods 1. Determine the payback period for an investment 2. Evaluate the acceptability of an investment project using the net present value method 3. Evaluate the acceptability of an investment project using the internal rate of return method. 4. Compute the simple rate of return for an investment FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW LEH Sign In в r u . B- 5- Number Formation 1 Format as Styles. Alignment Cells Editing...
Problem 2
A proposed process (see table below) has a lifetime of 10 years
and a total fixed capital investment of $60 million (to be
committed in equal parts over years 0 and 1). Just prior to startup
(end of year 1), a working capital of $25 million is required.
Projected annual revenues and operating expenses yield an annual
pre-tax cash flow of $50 million, however the plant is projected to
operate at 50% capacity in year 2. The 5-year...
Question 4 (30 marks) The following represents the financial statements of Cash Smart (Pty) Ltd. Use the information contained therein and other information provided to answer the questions that follow: Statement of Comprehensive Income for Cash Smart (Pty) Ltd for the year ended 30 June 2020 R'000 95 576 62 000 33 576 6 000 39 576 Sales revenue Cost of sales Gross profit Other operating income Gross operating profit Operating expenses Operating profit Financing costs Profit before taxation Taxation...
How to do question (b)?
Digital Bhd Balance Sheet as o' 31 D,cember 2017 2018 milion) nillion) million Cash 300 Fixed assets Fixed assets at cost 1.566 (610 2,373 2,718 Acoumulated depreciation Total Assets 6)1.135 1.250 2,055 2.635 Current liabilties Accounts payable Other aceruas Long-term Liablities 10% Debentures de 2000 Total Liabilities 81 20 30 1,000 1,764 701 1,361 Shareholders Equity Common stock, RM 1 par, 100.000,000 shares issued and outstand 100 105 2,535 100 105 344 1,250 Share Premium...
2 16 RDD 71% je QUESTION 1 (20 MARKS) P. Gumede is the proprietor of PG Stores. He commenced trading on 01 March 2017. At the end of the second year of trading, his bookkeeper resigned unexpectedly and Mr Gumede found that the financial statements for the year ended 28 February 2019 were incomplete. He requires your assistance in completing them. The pre-adjustment trial balance, adjustments and additional information that were extracted from the accounting records as at 28 February...
Problem 1
Tallahassee Clinic projected the following budget information
for 2018:
Total FFS Visit Volume
90,000 visits
Payer Mix:
Blue Cross
40%
Celtic Insurance Company
60%
Reimbursement Rates:
Blue Cross
$25 per visit
Celtic Insurance Company
$20 per visit
Variable Costs – Resource Inputs:
Labor
48,000 total hours
Supplies
100,000 total units
Variable Costs – Input Prices:
Labor
$25 per hour
Supplies
$1.50 per unit
Fixed Costs (overhead, plant, and equipment)
$500,000...
Question 1, 2 and 3
GIVEN INFORMATION FOR QUESTIONS 1-3 The financial information below pertains to Notsonice CC. The information was prepared by the Close Corporation's accountant. The members of the Close Corporation are considering hiring a more suitable accountant as the statement of financial position never balances. EXTRACT OF BALANCES OF NOTSONICE CC AS AT 31 JULY 2019 Member's contribution: Not Member's contribution: So Member's contribution: Nice Land and buildings at cost Furniture and equipment at cost Accumulated depreciation:...
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