14. Your company has a Cost of Capital of 10%. You are presented with the results of a CapitalInvestment Appraisal of FOUR different projects (see below). Which project should be accepted?

Project Alpha Project Beta Project Delta Project Gamma 4 years 3 years 2.5 years 11% 11% 13% Payback 2 years Period (PP) Accounting 12% Rate of Return (ARR) Net Present 60,000 Value (NPV) Internal Rate 11% of Return (IRR) 20,000 10,000 (20,000) 10% 8% 14% A) Project Alpha B) Project Beta C) Project Gamma D) Project Delta 15. What is the reasoning behind charging depreciation in financial accounting? A) To ensure funds are available for the eventual replacement of the asset. B) To comply with the consistency concept. C) To ensure that the asset is included in the Statement of Financial Position (Balance Sheet) at the lower of cost and net realisable value. D) To match the cost of the non-current assets to the revenue that the asset generates 10. Black Friday sales (or other similar sales which have high discounts on sale items) can be seen as a major source of: A) Debt B) Short-term Internal Finance C) Long-term Internal Finance D) External finance