Question text If the present value for year 1 is 20000 Present value for year...
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Accounting
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
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