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Brogue Project The following information is available about an investment project. +/- 5% 210 80 Brogue Project Estimated outlay () Net cash flow for year

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Brogue Project The following information is available about an investment project. +/- 5% 210 80 Brogue Project Estimated outlay () Net cash flow for year 1 () Annual compound growth rate (%) best worst probable Project life (years) Discount rate (%) 20 0 15 3 10 What is the worst NPV expected on Project Brogue? Enter your answer to the nearest . Type your answer... The net present values for two investment projects for each of three states of the economy are summarised in the table below. Low or no growth Medium growth 10 6 Possible state of the economy High growth Project 1 [m] 26 Project 2 [m] 12 The probabilities of the states of the economy for the duration of these projects are as follows: 9 5 High growth 0.3 Medium growth 0.5 Low or no growth 0.2 What is the expected net present value of Project 1? Calculate your answer correct to 1 decimal place. Type your answer... A company has two production (Cutting and Packing) departments and one service department (Personnel). The data for the next production period is as follows: Personnel 53,000 Total overheads () Machine hours (hrs) Labour hours No of employees Labour hour rate () Cutting 133,000 59,000 23,000 575 Packing 158,000 30,000 31,000 775 16 6.30 8.50 6.23 All employees make use of the Personnel department. The company is calculating its overhead recovery rates. Calculate the machine hour rate for overhead recovery in the Packing Department. Calculate and enter your answer in the same format as the labour hour rate. Type your

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