Chapter 14, Problem 7PROB

Where discount factors are required, use only the four decimals present value tables (Appendix 1 and 2) that appear after the formula sheet. REQUIREDUse the information provided below to answer the following questions. Ignore taxes.5.1    Calculate the Payback Period of both projects (expressed in years, months and days.)    5.2    Calculate the Net Present Value of both projects.    (Your answers must include thecalculations of the present values and NPVs.)            5.3    Calculate the Internal Rate of Return (IRR) of Project B (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive cost ofcapital rates) and interpolation.            5.4    On the basis of the IRR, should Project B be considered favourably for investment? Why?    5.5    Calculate the Accounting Rate of Return on average investment of Project A (expressedto two decimal places).     INFORMATION The following information relates to two capital expenditure…

Use the information provided below to prepare the following for May and June 2025: Debtors Collection Schedule Cash Budget.     The following information was provided by Lewis Traders:1.    An unfavourable bank balance of R40 000 is expected on 30 April 2025.    2.    Budgeted credit sales for April to June 2025 are as follows:     April R420 000 May R372 000 June R432 000 3.    Credit sales are estimated to be 60% of the total sales. The balance of the sales is for cash. Customers who purchase for cash are entitled to a discount of 10%.4.    Collections from credit sales are expected to be as follows:•    30% during the month of sale (These debtors receive a 5% discount.)•    70% in the following month.5.    Budgeted purchases of inventories from April to June 2025 are as follows: April R360 000 May R320 000 June R400 000

Prepare the Pro Forma Statement of Financial Position as at 31 December 2025 from the information provided below. Info: The budgeted Statement of Financial Position of Candyland Ltd as at 31 December 2024 is as follows:   Candyland Ltd Statement of Financial Position as at 31 December 2024   R ASSETS   Non-current assets 2 500 000 Fixed/Tangible assets 2 500 000 Current assets 2 250 000 Inventory 1 500 000   Accounts receivable 625 000 Cash 125 000 Total assets 4 750 000     EQUITY AND LIABILITIES   Equity 3 500 000 Ordinary share capital (150 000 shares) 3 000 000 Retained earnings 500 000 Non-current liabilities 750 000 Long-term loan: Barbie Bank 750 000 Current liabilities 500 000 Accounts payable 500 000 Total equity and liabilities 4 750 000 Candyland Ltd provided the following additional financial data to assist in the preparation of the Pro Forma…