The following net present values have been calculated at a range of interest rates for a project:

Interest rate

NPV

10% 16 550

12% 4 275

14% (6 620)

what is theinternal rate of returnof this project (calculated to two decimal places)?

a.

13.10%

b.

13.00%

c.

13.21%

d.

12.78%

Hill and Hamer Limited makes specialist storage units. In the 20X2 financial year each unit will sell for 178. Costs of manufacture are: direct materials 38 and direct labour 26. Fixed costs are budgeted at 126 680. The net profit budgeted for 20X2 is 92 270.

What is the company's margin of safety in units (to the nearest whole unit)?

a.

810

b.

1111

c.

302

d.

1921

Fitzwarren and Hamid Limited manufactures a standard model of garden gate. The selling price of a gate is 95. Variable costs of manufacture are 38. During the 20X5 financial year, the company expects to incur fixed production costs of 60 000 and fixed selling and administration overheads of 22 000.

How many garden gates will the company have to sell in order to break even (to nearest whole unit)?

a.

1439

b.

2158

c.

863

d.

1053