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Pleass kindly help with below questions. From 3.1 to 3.4 3.1 Suppose that a jewellery manufacturer, expects that annual consumption of a certain item to
Pleass kindly help with below questions. From 3.1 to 3.4
3.1 Suppose that a jewellery manufacturer, expects that annual consumption of a certain item to be 7 000 units and the average cost per order is R50. The purchase price is R15 per item and the average inventory holding costs is 25% per annum. Calculate the firm's economical order quantity (EOQ). Provide your final answer only [3] 3.2 Consider the following financial statement information for the Windhoek Balloon Company: Item Beginning Ending Inventory 7603 8319 Accounts receivable 4226 4787 Accounts payable 6291 7100 Net sales R62 311 Cost of goods sold R50 625 Calculate the operating cycle and cash cycle. Provide your final answers only 3.2.1 Operating Cycle [3] 3.2.2 Cash Cycle [3] [4] 3.3 Project FishFORCE has the following details: . Cost of the project: R 20 000 000 R 160 per unit Selling Price: Variable cost Fixed costs: R 95 per unit R 2 000 000 per annum Assume no taxation Calculate the: Provide your final answers only 3.3.1 break-even point in rands and 3.3.2 break-even point in volume (units) for Project FishFORCE? 3.4 You have been appointed as the Financial Manager of Teslo (Pty) Ltd. You need to evaluate the following two mutually exclusive projects with the following cash flows: Year Project A (CFs in Rands) Project B (CFs in Rands) 0 - 60 000 - 60 000 1 17 000 25 000 2 23 000 28 000 3 17 500 5 000 4 10 000 11 000 The discount rate for these two projects is 15%. 31 May 2022 - Module Code: EBAD401 Page 6 of 9 From the above information, calculate the following. Provide your final answers only [2] 3.4.1 Net Present Value (NPV) of Project A, and 3.4.2 Net Present Value of Project B Step by Step Solution
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