Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. Analyse the company's capital structure and critically assess different types of financing options available to the company. Calculate the cost of these different types of financial sources. Recommend currently which financing option is more justifiable for the company and explain how this can improve the overall business performance.
2. Critically analyse the company's performance in managing effectively its financial resources. Consider working capital management, accounts receivable management and financial control systems.
3. You are working for JD Printing Ltd., as a Finance Assistant and your manager asked you to perform an investment appraisal analysis on a new capital investment. The company is considering renewing one of their printing machines and they have found three possible options. You are required to evaluate these different options in your report and recommend one of them for purchasing. The company's cost of capital is 15% and the company usually accepts projects with payback period shorter than 5 years period. (2.1, 2.2, 2.3, 2.4)
Perform an investment appraisal analysis using some appraisal techniques (Payback period, Net Present Value, Internal Rate of Return etc.) Write a report on your evaluation and justify your recommendations.
Table 1: The projections with regards to the printing equipments
Machine A
Machine B
Machine C
Price (£)
1,000,000
550,000
400,000
Expected economic life
6 Years
Year 1 revenue (£)
150,000
85,000
70,000
Year 2 revenue (£)
230,000
120,000
125,000
Year 3 revenue (£)
190,000
Year 4 revenue (£)
300,000
195,000
165,000
Year 5 revenue (£)
250,000
200,000
Year 6 revenue (£)
140,000
180,000
80,000
Scrap value (£)
40,000
Nil
Table 2: Present Value Factors
Year/Rate
14%
15%
16%
17%
18%
19%
1
0.8772
0.8696
0.8621
0.8547
0.8475
0.8403
2
0.7695
0.7561
0.7432
0.7305
0.7182
0.7062
3
0.675
0.6575
0.6407
0.6244
0.6086
0.5934
4
0.5921
0.5718
0.5523
0.5337
0.5158
0.4987
5
0.5194
0.4972
0.4761
0.4561
0.4371
0.419
6
0.4556
0.4323
0.4104
0.3898
0.3704
0.3521
7
0.3996
0.3759
0.3538
0.3332
0.3139
0.2959
8
0.3506
0.3269
0.305
0.2848
0.266
0.2487
9
0.3075
0.2843
0.263
0.2434
0.2255
0.209
10
0.2697
0.2472
0.2267
0.208
0.1911
0.1756
What is the Scope of IFRS 8 IFRS 8 applies to organisations who: Equity or debt instruments are traded in a public market (stock market) Is in the process of obtai
Q. Consigner for safe transportation of dangerous goods? It is the responsibility of the consigner to ensure the following, 1. The goods carriage should have a valid registr
Following are return expectations on the S&P 500 index for the upcoming year with the corresponding probabilities: Expectation Return
WHAT IF BALANCE DOES NOT EXIT
Q. Explain Functions of Finance Financial Management? Functions of Finance or else Financial Management: - The functions of Financial Management are: (1) Determining the Fin
The basic form of a mortgage backed security is that of a mortgage pass-through security. Among the mortgage-related securities, the mortgage pass-through s
A niche market targets a well-defined and specific market segment. Firms that operate in niche markets will therefore cater for the precise and distinct needs of their customers. D
Internal business risk associated with the operational efficiency of the firm. The operational efficiency differs from company to company. The efficiency of operation is reflected
Describe the general pattern of cash flows from a bond with a positive coupon rate. Cash flows from a bond along with a positive coupon rate contain periodic interest payments an
discuss the applicability of operating cycle in poultry industry[consider broilers]
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd