Question 1: Cupcake Sdn Bhd is considering the purchase of a machine that costs RM50,000. Assume the required rate of return is 10% and the following is the cash flow schedule. Year 1 2 3 RM 20,000 30,000 20,000 What is the payback period of the machine? * Your answer What is the net present value (NPV) of the machine?* Your answer What is the internal rate of return (IRR) of the machine? * Your answer What is the machine's profitability index (PI)? * Your answer Question 2: Mr. K has gathered the following information about two projects, each with a 9% required rate of return. Initial cutian Life Cash flows Project X RM20.000 5 years RM11 500 year Project Y RM44.000 6 years RM1000/year Calculate the NPV for each project. Your answer If the projects are independent, which project is more favourable? Should the company accept or reject both? * Your answer ! If the projects are mutually exclusive, which project is more favourable? Should the company accept or reject both? * Your answer Question 3: Explain the purpose of cash budgeting. * Your answer Question 4: Gift For You Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in (refer to table below) the company's sales budget for the second quarter. From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled RM230,000, and March sales totaled RM260,000. April May June RM300,000 RM500,000 RM200,000 ! Calculate the expected cash collections from sales in April. * Your answer Calculate the expected cash collections from sales in May. Your answer Calculate the expected cash collections from sales in June. * Your answer Calculate the total expected cash collection for the second quarter. * Your answer Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date. * Your answer Submit