Consider that you are evaluting the following projects to undertake as per your capital budgeting activity You have capital budget constarin of 10,000. Project #3 and Project#4 are mutually exclusive. You have extimated your WACC as 12%.
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Consider that you are evaluting the following projects to undertake as per your capital budgeting activity You have capital budget constarin of 10,000. Project #3 and Project#4 are mutually exclusive. You have extimated your WACC as 12%.
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- Particulars 31st Mar' 19 Amt (Rs) 31st Mar' 20 Amt (Rs) Land and Building 3600000 3600000 Cash 400000 320,000 Sundry Debtors 640000 800,000 Temporary Investments 400000 640,000 Stock 3680000 4320000 Prepaid Expenses 560000 24000 Plant and Machinery 1920000 3096000 Total Assets 11200000 12800000 Current Liabilities 1280000 1600000 Loans 3200000 3200000 Capital 4000000 4000000 Retained Earnings 936000 1624000 Statement of Profit for the Current Year 1st Apr to 31st Mar' 20 : Amt (Rs) Sales 8000000 Less: Cost of Goods Sold -5600000 Less: Interest -320000 Net Profit 2080000 Less: Taxes @ 50% -1040000 Profit after Tax 1040000 Profit Distributed 440000 Calculate Current Ratio Debtors Turnover Ratio Stock Turnover Ratio Return on Total AssetsCh 5. The following project has cash flows as follows: Year Project A 0 -$705,000 1 $225,000 2 $421,500 3 $275,000 What is the IRR? Round to one place past the decimal point and format as "XX.X"A4 9b A4 9a We find the following information on NPNG (No-Pain-No-Gain) Inc.: EBIT = $2,000,000Depreciation = $250,000Change in net working capital = $100,000Net capital spending = $300,000 These numbers are projected to increase at the following supernormal rates for the next three years, and 5% after the third year for the foreseeable future: EBIT: 20%Depreciation: 10%Change in net working capital: 15%Net capital spending: 10% The firm’s tax rate is 35%, and it has 1,000,000 outstanding shares and $8,000,000 in debt. We have estimated the WACC to be 15%. b. Calculate the CFA* for each of the next four years, using the formula CFA* = EBIT(1 – T) + Depr – ΔNWC – NCS.
- Breakdown 3/30/2022 3/30/2021 3/30/2020 Operating Cash Flow 90,480,000.00 91,630,000.00 76,230,000.00 Investing Cash Flow (17,280,000.00) (15,280,000.00) 17,910,000.00 Financing Cash Flow (80,150,000.00) (93,090,000.00) (68,190,000.00) End Cash Position 11,470,000.00 18,420,000.00 32,160,000.00 Changes in Cash (6,950,000.00) (16,740,000.00) 25,950,000.00 Beginning Cash Position 18,420,000.00 32,160,000.00 6,210,000.00 Other Cash Adjustment Outside Change in Cash - 3,000,000.00 - Capital Expenditure (12,280,000.00) (41,630,000.00) (8,620,000.00) Issuance of Capital Stock - - - Issuance of Debt - 1,880,000.00 - Repayment of Debt - (1,880,000.00) - Free Cash Flow 78,200,000.00 50,000,000.00 67,610,000.00 Can you make this indirect method of cash flow into a direct method of cash flow? Please donot provide solution in image format and it should be in step by step format and asapQuestion 2 Sunshine Corporation is reviewing an investment proposal. The initial cost of the investment isR52 500. The estimated cash flows and net profit for each year are presented in the schedulebelow. All cash flows are assumed to take place at the end of the year. year Net cash flows Net profit R20 000 R2 500 R17 500 R3 500 R15 000 R4 500 R12 500 R5 500 R10 000 R6 500 The cost of capital is 12%. Required:Calculate the following:1. Payback Period 2. Net Present value 3. Accounting rate of returnYear Cashflow Rat2 @ 12% 0 -15600 1 6800 2 8000 3 7600 4 6400 5 -3800 ========================= what is the discounting Approach? What is the reinvesting Approach? What is the Combination Approach? Please as detailed as possible with calculations
- QUESTION 4 (20 MARKS)REQUIREDUse the information provided below to prepare the Cash Flow Statement of Nascar Limited for the year ended 31 December 2021.INFORMATIONThe following Information was extracted from the records of Nascar Limited for the past two years:STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER:2021 (R) 2020 (R)Sales 18 560 000 12 000 000Cost of sales (12 800 000) (7 500 000)Gross profit 5 760 000 4 500 000Operating expenses (2 912 000) (2 120 000) Depreciation 300 000 260 000 Other operating expenses 2 612 000 1 860 000Operating profit 2 848 000 2 380 000Interest on mortgage loan (240 000) (720 000)Profit before tax 2 608 000 1 660 000Company tax (782 400) (498 000)Profit after tax 1 825 600 1 162 000STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:2021 (R) 2020 (R)ASSETSNon-current assets 24 641 600 24 440 000 Fixed assets 24 641 600 24 440 000Current assets 3 560 000 3 360 000 Inventories (all Trading inventory) 1 200 000 2 500 000 Accounts receivable…FNCE 623 – Financial Management Individual assignment Belgravia Petroleum Inc. is trying to evaluate a generation project with the following cash flows: Year Cashflow 0 -$300,000,000 1 $63,000,000 2 $85,000,000 3 -$50,000,000 4 $145,000,000 5 $175,000,000 6 -$50,000,000 7 $70,000,000 8 $72,000,000 Construct a spreadsheet and calculate the following (the required rate of return is 12%): Payback period Discounted payback period Modified IRR The discounting approach The reinvestment approach The combination approach Net present value (NPV) Based on your analysis, should the company take the project? Why? IMPORTANT: Use MS Excel functions (PV, FV, NPV, and IRR) in your spreads please show answer the answer on Excel and full description on Excel sheetThe project's NPV? WACC: 10.00% Year 0 1 2 3 Cash flows -$1,000 $450 $460 $470
- CF 1 2 3 4 5 W 100 200 200 300 300 X 600 - - - - y - - - - 1200 Z 200 - 500 - 300 Calculate the future value of each cash flow stream assuming a compound annual interest rate of 10%. Also calculate present value of each cash flow stream assuming a compound annual interest rate of 14%.Find 1. Payback 2. Discounted payback. Compare the two methods. WACC: 9.00% Year 0 1 2 3 4 5 6 Cash flows −$1,200 350.00 480.00 (10.00) 830.00 (20.00) 1,200.00Question content area top Part 1 (Related to Checkpoint 6.6) (Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment Alternatives End of Year A B C 1 $ 20,000 $ 20,000 2 20,000 3 20,000 4 20,000 5 20,000 $ 20,000 6 20,000 100,000 7 20,000 8 20,000 9 20,000 10 20,000 20,000 (Click on the icon in order to copy its contents into a spreadsheet.) Assuming an annual discount rate of 23 percent, find the present value of each investment. Question content area bottom Part 1 a. What is the present value of investment A at an annual discount rate of 23…