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Anglo Limited intends expanding its productive capacity at its plant in Witbank. A new machine will be imported from Germany and will have a purchase price of R1 400 000. Shipping and transport costs will amount to an additional R400 000. The purchase of the new machine will result in an increase in working capital of R200 000. REQUIRED: The initial investment of the new machine will amount to : A. (R1 600000) B. R2 000000 C. (R1 800000) D. (R2 000000) INFORMATION: Acsion Limited forecasted the following for the last three months of the year: The company's policy is to maintain closing inventory at a level of 50% of the following months forecasted sales. REQUIRED: The number of units to be produced in October is: A. 2000 B. 2400 C. 3500 D. 2200 Acsion Limited produces a single product and forecasted the following for the last three months of the year: The company's policy is to maintain closing inventory at a level of 50% of the following months forecasted sales. Material and labour requirements are as follows: REQUIRED: The total material requirements for November is: A. 5200kg B. 2600kg C. 5400kg D. 2700kg INFORMATION: Afrimat Limited intends purchasing a new machine to expand operations. The new machine will cost R1 400000 . The new machine will have a useful life of five years and will be depreciated on a straight line basis over its useful life. The company is subject to a tax rate of 28%. The new machine will generate earnings before interest, depreciation and taxes as follows: REQUIRED: The annual after tax operating cash flow in year 1 will amount to: A. R424 000 B. R144 000 C. R200 000 D. R420 000 Brikor Limited produced the following forecast for the first quarter of the new year: The total budgeted sales for the quarter is: A. R10 694000 B. R4 800000 C. R1 694000 D. R2 220000 INFORMATION: Afrimat Limited intends purchasing a new machine to expand operations. The new machine will cost R1 400000 . The new machine will have a useful life of five years and will be depreciated on a straight line basis over its useful life. The company is subject to a tax rate of 28%. The new machine will generate earnings before interest, depreciation and taxes as follows: REQUIRED: Annual depreciation on the new machine will amount to: A. R280000 B. R140 000 C. R200 000 D. R1 400000 Goldfields Limited intends purchasing a new machine to replace an existing machine. The new machine will have a purchase price of R 1200000 . Transport and installation costs for the new machine will amount to an additional R120 000. The new machine will result in an increase in working capital of R160 000. The old machine was purchased five years ago at a cost of R800 000. The machine was depreciated over its useful life of five years to a NIL book value. The old machine is expected to be sold as scrap for R60 000. At the time of its purchase the old machine required an increase in working capital of R80 000. The company is subject to a 28% tax rate. REQUIRED: The initial investment for the replacement project is: A. (R1200 000) B. (R1 196800) C. (R1 356 800) D. (R1 320 000) INFORMATION: Acsion Limited forecasted the following for the last three months of the year: The company's policy is to maintain closing inventory at a level of 50% of the following months forecasted sales. REQUIRED: The number of units to be produced in November is: A. 5300 B. 2600 C. 2700 D. 4000
