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handwritten is also accepted but please let it be neat.need help asap Question 2 a) The treasurer of Alamanda Berhad has projected the cash flows
handwritten is also accepted but please let it be neat.need help asap
Question 2 a) The treasurer of Alamanda Berhad has projected the cash flows of Projects A, and B: Year 0 1 2 Project A -RM150,000 RM 110,000 RM 150,000 Project B - RM 300,000 RM 200,000 RM 240,000 Suppose the relevant discount rate is 12 percent a year. i. Compute the Profitability Index for both projects. (5 marks) Continued... ii. Compute the NPV for both projects. (6 marks) iii. Suppose these two projects are independent. Which project(s) should Alamanda accept based on the profitability index rule? (2.5 marks) iv. Suppose these two projects are mutually exclusive. Which project(s) should Alamanda accept? (2.5 marks) b) Suncare Berhad has annual sales of RM36,500,000 (RM100,000 a day on a 365-day The following are the information obtained on Suncare Berhad: Annual sales = 20,000 units Purchase price per unit =RM1.50 Carrying cost = 15% from the inventory value Ordering cost = RM5 Lead time = 2 weeks i. Calculate the economic order quantity (EOQ) for Suncare Berhad. (5 marks) ii. Calculate the reorder point for Suncare Berhad. (4 marks) (TOTAL: 25 MARKS)Step by Step Solution
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