10:11 7.42 K/s 0 79% Mohammad Abdullah... Page 1 of 4 ASY Summer 20 North South University School of Business, BBA Problem Questions 1. Your firm has the option of making an investment in new software that will cost $120,000 today and is estimated to provide the savings shown in the following table ever its S-year life Year 1 2 Savings estimate 525,000 $40,000 555,000 $15,000 520,000 3 4 5 Should the firm make this investment if it requires a minimum annual return of 8% on all investments? 15 marks 4. Following are the Income Statement and the Balance sheet of "Act Formulations Limited for the year 2018 and 2019, Finance costs are the interest expenses. A new CFO was appointed and he wanted to know about the results of the ratios for 2019 in the following areas: Liquidity, Activity, Deht Management and Profitability Calculate the following ration in 2019 and comment on them: 14*5 = 20 marks Ouick rutin Inventory Turnover c Time Interest Famed Ratio Page 2 of 4 Summer 20 North South University ASY 10:11 7.42 K/s 0 79% Mohammad Abdullah... Page 1 of 4 ASY Summer 20 North South University School of Business, BBA Problem Questions 1. Your firm has the option of making an investment in new software that will cost $120,000 today and is estimated to provide the savings shown in the following table ever its S-year life Year 1 2 Savings estimate 525,000 $40,000 555,000 $15,000 520,000 3 4 5 Should the firm make this investment if it requires a minimum annual return of 8% on all investments? 15 marks 4. Following are the Income Statement and the Balance sheet of "Act Formulations Limited for the year 2018 and 2019, Finance costs are the interest expenses. A new CFO was appointed and he wanted to know about the results of the ratios for 2019 in the following areas: Liquidity, Activity, Deht Management and Profitability Calculate the following ration in 2019 and comment on them: 14*5 = 20 marks Ouick rutin Inventory Turnover c Time Interest Famed Ratio Page 2 of 4 Summer 20 North South University ASY