Chapter 5: Capital Budgeting Cupcake Sdn Bhd is considering the purchase of a machine that costs RM50,000. Assume the required rate of return is 10% and the following is the cash flow schedule: Year 1RM20,000: Year 2 RM30,000; Year 3 RM20,000 5. What is the payback period? Mark only one oval 2 years 25 years 1 year 15 years 6. What is the NPV? Mark only one oval 000 RM8.001.50 RM8.001 90 RM8.000 50 RM8.000 30 7 What is the IRR? Mark only one oval 18.82% 18.80% 18.54% 18.37% www.my 8 Which of the following is not the purpose of cash budgeting? Mark only one oval To help prepare the budgeted statement of financial position To monitor and assess performance To ensure that there is enough cash within the business to achieve the operational levels set by the functional budgets To provide information about the results of operations, financial position, and cash flows Gift For You Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter: April RM300,000; May RM500,000: June RM200,000. From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled RM230,000, and March sales totaled RM260,000. 5/7 9 Calculate the expected cash collections from sales in April.. Mark only one oval RM 250.000 RM182,000 RM265.000 RM23,000 10. Calculate the expected cash collections from sales in May." Mark only one oval RM210,000 RM100,000 100 RM336,000 RM182,000 11 Calculate the expected cash collections from sales in June. Mark only one oval RM350,000 RM336,000 RM420.000 RM210.000 12. Calculate the total expected cash collection for the second quarter Mark anly one oval RM1.000,00 RM1021.000 RM420,000 RM980,000 There were 13. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date. Mark only one oval RM190,000 RM210,000 RM200,000 RM180,000 7/7 This contact nor endorsed by Google Google Forms