An investment with an initial outlay of R500 000 generates five successive annual cash inflows of R75 000, R190 000, R40 000, R150 000 and R180 000 respectively. The internal rate of return (IRR) is [1] 7,78%. [2] 27,0%. [3] 9,48%. [4] 21,3%. [5] none of the above. Question 2 You must choose between two investments, X and Y . The profitability index (PI), net present value (NPV) and internal rate of return (IRR) of the two investments are as follows: Criteria Investment X Investment Y NPV R44 000 −R22 000 PI 1,945 0,071 IRR 16,00% 8,04% Which investment(s) should you choose, taking all the above criteria into consideration, if the cost of capital is equal to 12% per year? [1] X [2] Y [3] Both X and Y [4] Neither X nor Y [5] Too little information to make a decision 17 DSC1630

/in /by

An investment with an initial outlay of R500 000 generates five
successive annual cash inflows of R75 000, R190 000, R40 000, R150 000
and R180 000 respectively. The internal rate of return (IRR) is [1]
7,78%. [2] 27,0%. [3] 9,48%. [4] 21,3%. [5] none of the above.
Question 2 You must choose between two investments, X and Y . The
profitability index (PI), net present value (NPV) and internal rate of
return (IRR) of the two investments are as follows: Criteria
Investment X Investment Y NPV R44 000 −R22 000 PI 1,945 0,071 IRR
16,00% 8,04% Which investment(s) should you choose, taking all the
above criteria into consideration, if the cost of capital is equal to
12% per year? [1] X [2] Y [3] Both X and Y [4] Neither X nor Y [5] Too
little information to make a decision 17 DSC1630

You might also like
A firm uses three machines in the manufacture of three products. Each unit of product A requires 3 hours on machine I, two hours on machine II, and one hour on machine III. While each unit of product B requires four hours on machine I, one hour on machine II, and three hours on machine III. While each unit of product C requires two hours on each of the three machines. The contribution margin of the three products is birr 30, birr 40 and birr 35 per unit respectively. The machine hours available on the three machines are 90, 54, and 93 respectively. a. Formulate the above problem as a linear programing model b. Obtain optimal solution to the problem by using the simplex method. Which of the three products shall not by produced by the firm? Why? c. Calculate the unused capacity if any
Using the organizational chart, redesign the structure. What structural changes might make this organization more efficient and effective? Write a report what you would do and why? Be sure to include an example of the original organizational chart as well as the chart of you proposed revision of the organizational structure? (7)
In what ways did the Communist Revolution in China mimic the Bolshevik Revolution of 1917 in Russia? How were the two events different?
Suppose that there are 250 identical individual consumers in the market for commodity X, each with a demand function given by dx = 6-Px and 50 identical producers of commodity X, each with a supply function given by sx =5Px. (8 Marks) a) Derive the market demand function and the market supply function for commodity X. b) Compute the market equilibrium price and equilibrium quantity mathematically. c) Tabulate the market demand schedule and the market supply schedule for commodity X. d) show whether surplus or shortage occurs at i) P = 2 ii) P = 5
. Described The Sense Of Responsibility Ethic.
The case study says that: “The public’s perception of the public sector continued to be poor due to reactive communication and a lack of effective public relations with communities concerning government policies and programmes.” (p.213) ---Explain what is the issue here by linking it to aspect(s) of good governance.
Write a note on the nature of Philosophical thinking. How do you relate Philosophy to the discipline that you are familiar with in your under graduate/Post graduate programme of study? Explain
Consider Bond XYZ Coupon rate: 9,75% per year Yield to maturity: 11,4% per year Maturity date: 15 April 2047 Settlement date: 29 November 2021 The clean price is