You need to calculate for 2012 the following ratios and measures:

Part Two: Ratio analysis

Comment and interpret on how the 2013 ratios and measures differ from the 2012 ratios and measures you calculate for each question. Make your comments brief (no more than 100 words for each comment). Enter your comments in the fields below for each section for the following areas:

Profitability Ratios

Profitability Ratios 2

Leverage Measures

Efficiency Measures

Liquidity Measures

If a certain ratio has changed significantly, explain exactly what the change indicates about that particular aspect of the business. If it has gone down, is that a positive or negative sign? Why or why not?

Part Three: NPV calculation

Consider the following investment proposal for a 6-year project.

The investment has an upfront cost of $1,500,000.

The proposal is expected to generate cash inflows for 6 years according to the following schedule:

Year 1: $750,000;

Year 2: $1,500,000;

Year 3: $2,000,000;

Year 4: $1,250,000;

Year 5: $1,000,000;

Year 6: $500,000.

Each year of operation you must also pay the cost of labour attached to the project a cash outflow of $750,000 per year.

You have estimated that the appropriate discount rate for the project is 11% per annum.

Calculate the NPV of the project and then select the answer closest to your NPV calculation in the quiz for part one of this assessment. (see link above in Part One).

Statement of Profit and Loss