a) Big Pineapple, a maker of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of RM40,000 and will generate free cash inflows of RM7,000 in years 1 through 5, RM8,000 in year 6, RM10,000 in year 7, RM15,000 in year 8, RM10,000 in year 9 and RM4,000. If the required rate of return is 10 percent; 1. Calculate the Payback Period? 2. Calculate the Net Present Value (NPV)?
CAPITAL BUDGETING DECISION CRITERIA
(a) Big Pineapple, a maker of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of RM40,000 and will generate free
1. Calculate the Payback Period?
2. Calculate the
(b)Honeydew Sdn. Bhd has been presented with an opportunity to invest in a project. Investment Required is RM60,000,000, Annual Gross Income is RM14,000,000, Annual Operating Costs is RM5,500,000 and nil for Salvage Value after 10 years. The project is expected to operate as shown for ten years. If your management expects to make 10% on its investment before taxes. Calculate the
(c)Many acts such as deception, bribery, forgery, extortion, corruption, theft, conspiracy, embezzlement, misappropriation, false representation, and concealment have been used to describe the term fraud. Discuss the five (5) ethics in
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(c)Many acts such as deception, bribery, forgery, extortion, corruption, theft, conspiracy, embezzlement, misappropriation, false representation, and concealment have been used to describe the term fraud. Discuss the five (5) ethics in
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