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Here is currently making investment appraisals of two potential long-term supermarket projects, A and B. Both projects needs the similar initial investment of £20m. The following ratios have been calculated for the projects. Ratios Project A Project B Payback period (years) 5 6 Accounting Rate of Return (ARR %) 15 18 Net Present Value (NPV £m in 15 years) 120 145 Internal Rate of Return (IRR %) 16 14 You are needed to give recommendations to the directors for a choice of either project A or project B. Here is not able to undertake the above two projects at the same time or a mixed project of A and B.
Why does a tax create a deadweight loss? What determines the size of this loss? A tax makes deadweight loss by artificially increasing price above the free market level, so de
The capability of an asset to be converted into cash as quickly as possible without any discount to its value.
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Determine the calculation of materiality For example: Turnover 1% -1.5% Net assets 1% -2% Net profit 2% -6% Whatever numbers are selected they would be based on r
cost of capital, Financial Management The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equ
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Question: (a) Give the four main types of financial investments and state the risks and benets associated to each type. (b) (i) Let k(t; T; s) denotes the return at time t
Working capital cycle in a manufacturing business Average time raw materials are in stock (raw materials/purchases x 365 days) Plus Time
You have $20 to spend on high quality pens and low quality pens. High quality pens cost $5 each and low quality pens cost $2 each. (a) Suppose that you will spend your entire
The Relationship between Futures Price and Cash Price Any commodity that can be bought in the market has a price, which is referred to as cash or spot price for immediate deliv
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