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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