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ABC Trading is a LLC company based in Dubai with a small business. The finance Manager of the company Mr Shakir is working here for

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ABC Trading is a LLC company based in Dubai with a small business. The finance Manager of the company Mr Shakir is working here for last 6 years and help the CFO in making all financial decisions. The company sales have grown by 10% p.a. since last 6 years. The Profitability details for the last six years are as follows: 2015 2016 2017 2018 2019 2020 Sales 100,000 110,000 121,000 133,100 146,410 161,051 Cost of sales 50,000 53,500 57,245 61,252 65,540 70,128 Gross Profit 50,000 56,500 63,755 71,848 80,870 90,923 Admin & Gen Exp 20000 21000 22000 23000 24000 25000 Net Profit 30,000 35,500 41,755 48,848 56,870 65,923 See the trends for the last six years and estimate the 2021 and 2022 numbers, assuming the past trend is continued. The company has got the proposal to invest in a new opportunity. The expected outflows and inflows from the opportunity are as follows: 2021 2022 2023 2024 2025 Investment (cash outflow) -250,000 Cash Inflows 50,000 50,000 100,000 120,000 Answer the following questions on the basis of above information. 1 1 point What should be the company sales in 2021 O 194,872 None of the above O 177,156 161,051 1 point N What should be the company Net Profit in 2021 76,120 87,543 0 114,583 102,120 3 4 points Match the following Gross Profit in 2021 > Net Profit in 2022 if the payback requirement is 4 years, should company go ahead with opportunity Whether the opportunity has a positive NPV @ 10% required rate of return Whether the IRR of the Opportunity is more than the required rate of return (10%)

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