(p60) (p8) Question 16 Answer = 3 Net profit is the difference between the total costs and the total income over the life of the project. ((-155 000) + (-5 000) + 40 000 + 50 000 + 50 000 + 50 000 + 30 000) = R60 000 Question 17 Answer = 4 Net profit is the difference between the total costs and the total income over the life of the project. ((-140 000) + 15 000 + 5 000 + 20 000 + 30 000 + 60 000 + 70 000) = R60 000 Additional information about net profit: advantage as method for comparing
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Corporate Financial Management Practice Mid-Semester Examination (Answers at back) Disclaimer: This practice exam covers a selection of the types of questions that may be asked in the mid-semester exam‚ however it should not be taken as being exhaustive as to the topics that could be included in the exam. Students should therefore not be surprised if other types of questions appear in the exam. 1. $200 invested today and earning 8 per cent per annum compounded semi-annually will grow
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the company is willing to accept before starting a project. It is used in project evaluation to evaluate the amount of return on the project. A common method for evaluating the hurdle rate is apply the discounted cash flow method to the project‚ like net present value. 2. How does Teletech Corporation currently use the hurdle rate? They used it based on the firm’s rating‚ beta‚ cost of capital‚ and they calculated WACC of 9.3% for the whole corporation. 3. What are Rick Phillips’s arguments
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(60‚000) 1 18‚000 19‚000 2 15‚000 17‚000 3 18‚000 19‚000 4 16‚000 14‚000 5 19‚000 15‚000 6 14‚000 13‚000 Evaluate the above proposals according to: 1. Pay Back Period. 2. Accounting Rate of Return (ARR) 3. Net present value method (NPV) Proposal A is better than B‚ because ARR and NPV are higher than Proposal B 2. There are two Proposals. Proposal A and Proposal B. Proposal A costs $ 80‚000 and Proposal B costs $ 100‚000
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utility. This is ultimately a move that helps to ensure net neutrality stays locked down. What is Net Neutrality? Net neutrality is the principle that all governments and Internet service providers should treat all data on the Internet as equal. They should not be allowed to discriminate based on content‚ application‚ platform or the type of communication that is being used. In 2003‚ Tim Wu‚ a media law professor‚ coined this
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Net neutrality is what gives consumers the right to have access to the internet with no extra charge. It works by protecting costumers from being overcharged or being denied full access to what the costumer rightfully paid for. Without net neutrality‚ Internet users would have limited access to the internet while paying more for services and may only be able to see what is allowed to be seen‚ it will also slow down the internet service making it less accessible. the only ones benefiting from the
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Financial Statement Analysis Exercises (Chapter 2) 2-4. Consider the following potential events that might have taken place atVodafone Group Plc on 31 March‚ 2012. For each one‚ indicate which line items in Vodafone’s balance sheet would be affected and by how much. Also indicate the change to Vodafone’s book value of equity. (In all cases‚ ignore any tax consequences for simplicity.) a. b. A warehouse fire destroyed £50 million worth of uninsured inventory. c. Vodafone used £50million
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Reaction and Net Ionic Equation Going back to our first concept or topic‚ we’ve learn how to identify the Oxidizing and Reducing agent and the Oxidation as well as the Reduction. In this part of the Redox reaction or in this step‚ it is very important that you already know the Oxidizing and Reducing agent for us to find the half reaction. In this step or part‚ we will also learn how to balance using the addition of electrons in both sides if necessary. After this step we can now write the net ionic equation
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1.Sachin has asked his flat mate Jason for a $500 loan to cover a portion of his rent and utility costs. Sachin proposes repaying the loan with $300 from each of his next two financial aid disbursements‚ the first 4 months from now and the second 12 months from now. Jason’s alternative is to earn 5% annually in his money market account. Assume there is no risk of default‚ and that compounding is monthly. What is the NPV of the loan? (Enter just the number without the $ sign or a comma; round off
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company has a 16% rate of return. 2. Cash flow calculations and net present value On January 2‚ 20X1‚ Bruce Greene invested $10‚000 in the stock market and purchased 500 shares of Heartland Development‚ Inc. Heartland paid cash dividends of $2.60 per share in 20X1 and 20X2; the dividend was raised to $3.10 per share in 20X3. On December 31‚ 20X3‚ Greene sold his holdings and generated proceeds of $13‚000. Greene uses the net-present- value method and desires a 16% return on investments. a.
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