1. The six-month cash forecast for Kia Electricals Limited, which manufactures household electrical goods, shows that unless drastic action is taken, the company will be in a serious liquidity problem. It has decided that outlay in all types of expenditure must be reduced without significantly affecting the forecast sales.
Select 6 headings of expenditure where you consider the economies could be made and describe how you will achieve in these areas.

2. Highlight four the limitations of the following methods for dealing with risk in capital budgeting.
simulation analysis
sensitivity analysis

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1 1 Raw Materials Kia Electricals can r... View the full answer