QUESTION 1 A father wants to gift his daughter a present for her marriage, he offers her three options: Option A: $55,000 today Option B: $8,000 every year for 10 years Option C: $90,000 in 10 years Assuming a discount rate of 7%, calculate the present value of each option (give an answer for each) and decide what option is best for the daughter For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Arial 10pt BIUS Paragraph AV V I XOO Click Save and Submit to save and submit. Click Save All Answers to save all answers. !!! 4 points Save all Ae QUESTION 2 A Below is some information from Delta airlines' financial statements: Sales 345,000 COGS 167,000 Account receivable 21,500 Accounts payable 52,789 Inventory 3,500 Using this information calculate the company's cash conversion cycle QUESTION Y Ithmaar Holding B.S.C.(Bahrain Bourse, #ITHMRS) is considering two independent projects that have the following cash flows. Year Project A Project B $ 22,000 $ 55,000 17,000 15,000 6,000 3 7,000 35,000 Discount rate 9% 10% a) Calculate the Net Present Value (NPV) methods and explain which project is better. (1.5 marks) b) Calculate the Internal Rate of Return (IRR) of the two projects and explain which project is better. (1.5 marks) c) Calculate the Profitability Index (PI) of the two projects and explain which project is better. (1.5 mark) Note: You are allowed to use Financial Calculator For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). 100t Arial I U f Paranranh. " 1 2 wape 25,000 QUESTION 21 Candlyicious, a candy show in Dubai expects the following sales and material payments for the period January till May of the coming year (all numbers are in thousands) Sales Material Payments January BD 14,000 BD 18,000 February 30,000 21,000 March 46,000 19,100 April 22,000 22,400 14,000 May 18,000 The company notes that historically 30% of sales are for cash, 40% are collected one month after the sale, 30% are collected in the second month after the sale. Material payments are paid in the same month of incurrence Labor expenses are 5% of the month's sales. Rent payments are BD 1,200 per month Capital investment of BD 25000 is expected in May. The firm's ending cash balance in February was BD 2000, and its minimum required cash balance is 60 2,500 Compute Candylicious' Cash Receipts (2 marks) -Cash Payments (2 marks) and Net Cash Flow (1.5 mark) for March. April and May. Cash Receipts April May March Total cash receipts (2 marks) ick Save and Submit to save and submit. Click Save All Answers to save all answers. 5.5 points Seve All An