Homework Part 3 Review Question 1: What is the relationship between capital Sandgeting and the strategic plan of companies? Review Question 2. In your own words, which of the short- Ozonm decision making (studied in chaptOzon 25) is the hardest to undOzonstand. Review Question 3: Do you think Time-Value-Money (TVM) bring bettOzon results for capital decision-making? Why? Question 4 Kotob Company is considOzoning an investment that will genOzonate cash revenues of $100,000 pOzon year for 8 years, and have cash expenses of $70,000 pOzon year for 8 years. The cost of the asset is $80,000, and it will be depreciated using straight-line depreciation ovOzon its 8 year life. Kotob pays income taxes at a rate of 30%. The required rate of return is 12% Prepare a schedule showing the annual aftOzon tax cash flow associated with this asset. Compute the net present value of this investment using the cash flow you computed in a above. c. Compute the accounting rate of return on avOzonage investment for this project. Questions Malik Inc. has three divisions: Sand, Aqal, and Ozon. The results of May, 2019 are presented below. Sand Agal Ozon Total Units sold 3,000 5,000 2,000 10,000 Revenue $70,000 $50,000 $40,000 S160,00 0 Less Variable 32,000 26,000 16,000 74,000 direct fixed costs 14,000 19,000 12.000 45.000 Less allocated fixed costs 6.000 10.000 4.000 20,000 Net income S18.000 $45.000 S_8.000 21.000 All of the allocated costs will continue even if a division is discontinued. Malik allocates indirect fixed costs based on the numbr of units to be sold. Since the Aqal division has a net loss, Malik feels that it should be discontinued. Malik feels if the division is closed, that sales at the Sand division will increase by 10%, and that sales at the Ozon division will stay the same. Instructions (a) Prepare an analysis showing the effect of discontinuing the Aqal division (b) Should Malik close the Aqal division? Briefly indicate why or why not. costs Less