Please refer to my attached question papers. I got total 5 pages below. Thanks in advance .

SECTION A : ANSWER ALL QUESTIONS (TOTAL 40 MARKS] ZKA Co. is evaluating an investment proposal to manufacture Product 21, which has performed well in test. The company has determined that the after tax cash flows for the project will be as follow: Years 0 1 2 3 4 5 Cash flows (RM) -43,000 8,000 11,000 16,000 18,000 21,000 The initial investment will be RM43,000.00 The company also has determined that the appropriate discount rate (k) for this project is 12% Required: Define and Calculate Net Present Value (NPV). [15Marks] ii) Define and Calculate Internal Rate of Return (IRR). [15Marks) ill) Interpret the result of NPV & IRR to decide whether the project should beaccepted or not. [05 Marks) iv) Explain the types of capital investment projects [05 Marks) Required: (0) How liquid is the firm? Will it be able to pay its bills as they come due? Interpret the results. 105 Marks) Current Ratio Current Assets Current Liabilities Acid-Test (or Quick) Ratio Current Assets - Inventory Current Liabilities (11) Explain how has the firm financed the purchase of its assets? Interpret the results. [05 Marks) Debt Ratio Total Liabilities Total Assets Times Interest _Net Operating Income or EBIT Earned Interest Expense (ii) Calculate the Gross Profit Margin (GPM), Operating Profit Margin and Net Profit Margin. Interpret the results. [10 Marks) The gross profit margin (GPM) = gross profits + sales The operating profit margin = net operating income + sales The net profit margin = net profits + sales 5 [TOTAL 60 MARKS] SECTION B - ANSWER ANY THREE QUESTIONS. Question 1 a) Explain the four basic principles of Finance. [10 Marks] b) Elaborate generally accepted accounting principles (GAAP)? [10 Marks) Question 2 H. J. Boswell, Inc. Income Statement ($ millions, except per share data) for the Year Ended December 31, 2016 $2,700.00 Sales Cost of goods sold (2.025.00) Gross profit $ 675,00 Operating expenses Selling expense $190.00) General and administrative expense (67.50) Depreciation and amortization expense (135.00) Total operating expenses (292.50) $ 382.50 Net operating income (EBIT, or earnings before interest and taxes) Income from operating activities Interest expense Cost of debt financing Earings Before tax $ 315.00 Income taxes (11025) Cost of corporate income Taxes Net income S204.75 Income resulting from operating and financing activities H. J. Boswell, Inc. Balance Sheets ($ millions), December 31, 2015 and 2016 Assets Liabilities and Stockholders Equity 2015 2016 2015 2016 Cash $94.50 $90.00 Accounts payable $ 184 50 $189.00 Accounts Receivable 139.50 16200 Accrued expenses 45.00 45.00 Inventory 229.50 37800 Short-term notes 63.00 54.00 Other current 13.50 13.50 $ 292.50 $288.00 Total current liabilities assets Total current assets $ 477.00 $ 643.50 Long-term debt 720.00 771.75 1.669.50 1,84500 Total liabilities $1,012.50 $1,059.75 Gross plant and equipment (382 50) (51750) Less accumulated depreciation Common stockholders equity Net plant and $1,287.00 $1,327.50 45.00 45.00 Common Stock- par value equipment Total assets $1,764.00 $1,971.00 Paid-in capital 324.00 324.00 Retained earings 382.50 542 25 $ 75150 $91125 Total common stockholders equity $1,764.00 $1.971.00 Total liabilities andstockholders equity Question 3 a) If you deposit $300,000 in an account that pays an annual interest rate of 12% compounded monthly, what will your account balance be in 15 years? (05 Marks] - Number of Years (n)) Future Value in Year n (FV.) Present Value (PV) Annual Interest Rate (1) Compounding Periods per Year (m) b) What is the present value of $350,000 to be received at the end of 25 years, given a 6% discount rate? [05 Marks) Present Value (PV) Future Value in Yearn (FV) Annual Numbers at Yours Interest Rate (1) c) Under Rule of 72, it determine the number of years it will take to double the value of your investment. If you are able to generate an annual return of 6%, how many numbers of years it would be taken to double the value of investment? 05 Marks) d) At what rate will $200,000 have to grow to reach $1,000,000 in 25 years? (05 Marks) 6 SECTION A : ANSWER ALL QUESTIONS (TOTAL 40 MARKS] ZKA Co. is evaluating an investment proposal to manufacture Product 21, which has performed well in test. The company has determined that the after tax cash flows for the project will be as follow: Years 0 1 2 3 4 5 Cash flows (RM) -43,000 8,000 11,000 16,000 18,000 21,000 The initial investment will be RM43,000.00 The company also has determined that the appropriate discount rate (k) for this project is 12% Required: Define and Calculate Net Present Value (NPV). [15Marks] ii) Define and Calculate Internal Rate of Return (IRR). [15Marks) ill) Interpret the result of NPV & IRR to decide whether the project should beaccepted or not. [05 Marks) iv) Explain the types of capital investment projects [05 Marks) Required: (0) How liquid is the firm? Will it be able to pay its bills as they come due? Interpret the results. 105 Marks) Current Ratio Current Assets Current Liabilities Acid-Test (or Quick) Ratio Current Assets - Inventory Current Liabilities (11) Explain how has the firm financed the purchase of its assets? Interpret the results. [05 Marks) Debt Ratio Total Liabilities Total Assets Times Interest _Net Operating Income or EBIT Earned Interest Expense (ii) Calculate the Gross Profit Margin (GPM), Operating Profit Margin and Net Profit Margin. Interpret the results. [10 Marks) The gross profit margin (GPM) = gross profits + sales The operating profit margin = net operating income + sales The net profit margin = net profits + sales 5 [TOTAL 60 MARKS] SECTION B - ANSWER ANY THREE QUESTIONS. Question 1 a) Explain the four basic principles of Finance. [10 Marks] b) Elaborate generally accepted accounting principles (GAAP)? [10 Marks) Question 2 H. J. Boswell, Inc. Income Statement ($ millions, except per share data) for the Year Ended December 31, 2016 $2,700.00 Sales Cost of goods sold (2.025.00) Gross profit $ 675,00 Operating expenses Selling expense $190.00) General and administrative expense (67.50) Depreciation and amortization expense (135.00) Total operating expenses (292.50) $ 382.50 Net operating income (EBIT, or earnings before interest and taxes) Income from operating activities Interest expense Cost of debt financing Earings Before tax $ 315.00 Income taxes (11025) Cost of corporate income Taxes Net income S204.75 Income resulting from operating and financing activities H. J. Boswell, Inc. Balance Sheets ($ millions), December 31, 2015 and 2016 Assets Liabilities and Stockholders Equity 2015 2016 2015 2016 Cash $94.50 $90.00 Accounts payable $ 184 50 $189.00 Accounts Receivable 139.50 16200 Accrued expenses 45.00 45.00 Inventory 229.50 37800 Short-term notes 63.00 54.00 Other current 13.50 13.50 $ 292.50 $288.00 Total current liabilities assets Total current assets $ 477.00 $ 643.50 Long-term debt 720.00 771.75 1.669.50 1,84500 Total liabilities $1,012.50 $1,059.75 Gross plant and equipment (382 50) (51750) Less accumulated depreciation Common stockholders equity Net plant and $1,287.00 $1,327.50 45.00 45.00 Common Stock- par value equipment Total assets $1,764.00 $1,971.00 Paid-in capital 324.00 324.00 Retained earings 382.50 542 25 $ 75150 $91125 Total common stockholders equity $1,764.00 $1.971.00 Total liabilities andstockholders equity Question 3 a) If you deposit $300,000 in an account that pays an annual interest rate of 12% compounded monthly, what will your account balance be in 15 years? (05 Marks] - Number of Years (n)) Future Value in Year n (FV.) Present Value (PV) Annual Interest Rate (1) Compounding Periods per Year (m) b) What is the present value of $350,000 to be received at the end of 25 years, given a 6% discount rate? [05 Marks) Present Value (PV) Future Value in Yearn (FV) Annual Numbers at Yours Interest Rate (1) c) Under Rule of 72, it determine the number of years it will take to double the value of your investment. If you are able to generate an annual return of 6%, how many numbers of years it would be taken to double the value of investment? 05 Marks) d) At what rate will $200,000 have to grow to reach $1,000,000 in 25 years? (05 Marks) 6