Question text

If the present value for year 1 is 20000

Present value for year 2 is 30000

Present value for year 3 is 50000

Present value for year 4 is 60000

The cost for the project in year 0 is 100000

What is the NPV?

Select one:

A. Other

B. 60000

C. 100000

D. 160000

Question text

The following summary information is available regarding KPC Plc.

Sales Revenue	$ 4,800,000
Net Income	$ 1,200,000
Total Assets	$ 6,000,000
Operating Assets	$ 3,800,000
Total Liabilities	$ 2,000,000
WACC	25%
Tax rate	20%
Return from Project A	$ 100000
Cost of project A	$ 20000

Compute the Return on Investment (ROI) for project A

Select one:

A. Other

B. 5

C. 4

D. 3

Question text

Company KPC has average trade receivables of $800,000 and annual sales of $960,000. It is considering the use of factoring given that this would result in a reduction in credit control costs of $200,000 per annum. The factoring house charges a fee of 1.5% of sales. It will provide an advance to the company of 90% of its receivables and will charge interest on this advance of 8% per annum. What is the earning or saving from factoring in this case study?

Select one:

A. 960000

B. Other

C. 800000

D. 200000