1.The following accounting ratios have been calculated from a set a company accounts: Capital productivity (CP) = 2.0, fixed asset productivity = 1.5 and the return on sales (ROS) = 20%. What is its return on capital employed (ROCE)?

b)An engineering project under consideration is expected to yield a cash flow of 20,000 in 5 years time. What is the present valuation of this cash flow if the nominal discount rate is 3% and the expected rate of inflation is 1%.