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please answer this problem uestion 1. A choice has to be made by Mr. Mohamed Ahamed between a new bike and a second-hand bike. The
please answer this problem
uestion 1. A choice has to be made by Mr. Mohamed Ahamed between a new bike and a second-hand bike. The relevant data are Particulars Initial investment ( Salvage vaue er 10 years5,000 of use (S.) Annual fuel cost for average 1,000 10,000 miles New bike 15,000 Second-hand bike 5,000 1.500 Anmual repair cost 1,000 3.000 If Mr. Mohamed Ahamed invests $ 15,000 or $ 5000 elsewhere, he except a retum of 10%. Estimated lives of both bikes are ten years a) Using the annual cost method, find out the annual total cost of New Bike b) Find the total cost of the second-hand bike using the annual cost method c) Advice Mr. Mohamed Ahamed whether he should so for new bike or the second-hand bike and iustifies your answer 2. Saeed Mohamed doing a business and he furmished the following infomation. You have to calculate the profit he gained by the business for the last financial year ended 31st March 2018 Stock at start of year: $30.000 Stock at end of year $20,000 Annual Sales: $50,000 Annual Purchases: $10,000 Total expenses: $5,000 Capital at start: $62,000 Capital at end: $18,000 You are required to find a) Gross profit ratio b) Net profit ratio c) Return on capital employed d) Interpret the above three outcomesStep by Step Solution
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