Question: 14. Consider all tutorial 1 input information as is, but the bond period is reduced to 20 years and own capital is increased from 30%

14.

Consider all tutorial 1 input information as is, but the bond period is reduced to 20 years and own capital is increased from 30% to 40%. What is the pre-tax NPV and before tax breakeven (BE) period

a.

R571 642 and BE between years 14&15

b.

-R17 734 and BE between years 11&12

c.

R571 642 and BE between years 11&12

d.

R19 495 and BE between years 11&12

e.

None of the above

15.

When will the Profitability Ratio be used?

a.

Compare cash flow at different point in time

b.

To calculate the Nett Present Value

c.

To simplify cash flow and convert cashflow for comparison purposes

d.

To select among projects with different capital Investments

e.

To calculate by summing up all project cash flows

PLEASE ANSWER TIMEOUSLY.

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