STUDY the following CANADORE mfg plc. published account...

year.................................2020 2019

Revenue................................2,319,327 1, 351,973

Cost of goods sold.............. 730,004 826,946

Gross profit..........................19.34% 11.95%

Selling & Distri.....................415,066 415,553

Admin expenses.................211,403 312,263

depreciation...........................1,581 1,531

Operating profit..................... // //

other income................................87 20

Net fin. income(expense).....185 (475)

Net profit b.4 tax..............1,545 1,223

tax exp/credit.................(278) (400)

net profit......................??? ??

Questions.

compute

one Ratio each in solvency, profitability and liquidity. show the workings and GIVE YOUR INTERPRETATIONS.(ANALYSIS).

A TRANS-ATLANTIC PROJECT

TRANS INC ( OWNERS OF THE TRANS-ATLANTIC PROJECT), expects a 21% rate of return on their investments. They are considering a 15 year project which will cost them $8m immediately, $10m at the end of each year for the first five years, $2.2m at the end of each year for the next five years, and $3.77m at the end of each year for the last 5 years of the project. Should they take on the project if it will return $3m at the end of each year for the first 3 years, $4m at the end of each year in the next 4 years, and $6m at the end of each year for the last 8 years?

c

1. Prepare a fully documented timeline of all cash flows

2. Calculate the NPV of the project.

3. Calculate the ROI of the project.

4. Determine the payback period of the project

5. Would you go ahead with the project? Why/why not?