Q 1:
|
Statement |
Project A |
Project B |
|
Investment cost |
40,000 |
50,000 |
|
Salvage value |
2,000 |
1,000 |
|
Cash flows |
80,000 |
70,000 |
|
The useful life |
five years |
four years |
1- Calculate the rate of return for each project, and what is best for the company?
2- NPV
Q2:If you have the following information about the financial position statement of the Red Sea Company
If you know that the cost of current liabilities is 4%, and the cost of long-term liabilities is 8% on this company.
The company increased its current liabilities by 8,000 riyals (meaning a decrease in its long-term liabilities by 8,000 riyals).
Calculate the following:
1) Net working capital.
2) The ratio of current liabilities to total assets.
3) Calculating the company's costs based on the balance sheet before the change
4) Calculating the level of current liabilities after the change.
Q3:
|
value |
liabilities |
value |
Assets |
|
35,000 |
current liabilities |
45,000 |
current Assets
|
|
45,000 |
Long term liabilities |
90,000 |
Fixed assets |
|
55,000 |
equity |
??????? |
- |
|
135,000 |
Total liabilities and equity |
135,000 |
Total assets |
The company increased its current liabilities by 8,000 riyals (ie, its long-term liabilities decreased by 8,000 riyals). Calculate the following:
1. Net working capital
2. The ratio of current liabilities to total assets.
3. Calculation of the company's costs based on the current balance sheet, and after the change the level of current liabilities.