Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

image text in transcribed

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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Health Care Finance

Authors: William O. Cleverley

3rd Edition

0834203413, 978-0834203419

More Books

Students also viewed these Finance questions

Question

What are employee assistance programs and wellness programs?

Answered: 1 week ago