Final Examination Capital Budgeting ABC Corporation produces 10,000 units of product x per month The average variable cost is Php 50 00 per unit In its operations, it incurs the following monthly expenses Rental Php 50,000 00 Supplies Php 20,000 00 Labor costs Minimum wage (Php 404 00) for 10 people (6days work week) Transportation cost Php 50,000 00 Depreciation expense Php 90,000 00 Salaries Php 120,000 00 Miscellaneous Expenses Php 45,000 00 Mark up on cost 200 Corporate tax of 30 How much is the total fixed cost How much is the total variable cost How much is the total cost How much is the sales How much is the profit before tax How much is the profit after tax How much is the net cash flow Based on the net cash flow, compute the Net Present value (NPV) if the risk adjusted discount rate is 15 , the initial investment is Php 10,000,000 00, and the expected recovery of capital is 5 years How much is the internal rate of return if the yearly payment is Php 3,000,000 00 plus Php 2,000,000 00 on the fifth year at 5 interest How much is the profitability index if the discount rate is 7 and the cash flows are as follow Y 0 is Php 5,000,000 00 Y 1 is Php 1,500,000 00 Y 2 is Php 3,000,000 00 Y 3 is Php 2,780,000 00 Y 4 is Php 4,000,000 00 Y 5 is Php 3,800,000 00 Y 6 is Php 5,500,000 00 and Y 7 is Php 2,500,000 00

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Final Examination-Capital Budgeting ABC Corporation produces 10,000 units of product x per month. The average variable cost is Php 50.00 per unit. In its operations,

Final Examination-Capital Budgeting

ABC Corporation produces 10,000 units of product x per month. The average variable cost is Php 50.00 per unit. In its operations, it incurs the following monthly expenses:

Rental- Php 50,000.00

Supplies-Php 20,000.00

Labor costs- Minimum wage (Php 404.00) for 10 people (6days work/week)

Transportation cost-Php 50,000.00

Depreciation expense- Php 90,000.00

Salaries-Php 120,000.00

Miscellaneous Expenses-Php 45,000.00

Mark up on cost -200%

Corporate tax of 30%

How much is the total fixed cost?
How much is the total variable cost?
How much is the total cost?
How much is the sales?
How much is the profit before tax?
How much is the profit after tax?
How much is the net cash flow?
Based on the net cash flow, compute the Net Present value (NPV) if the risk-adjusted discount rate is 15%, the initial investment is Php 10,000,000.00, and the expected recovery of capital is 5 years.
How much is the internal rate of return if the yearly payment is Php 3,000,000.00 plus Php 2,000,000.00 on the fifth year at 5% interest ?
How much is the profitability index if the discount rate is 7% and the cash flows are as follow: Y₀isPhp -5,000,000.00; Y₁is Php 1,500,000.00; Y₂is Php 3,000,000.00; Y₃is Php 2,780,000.00; Y₄is Php 4,000,000.00; Y₅is Php 3,800,000.00; Y₆is Php 5,500,000.00 and Y₇is Php 2,500,000.00?