Exercise $1$

Make a managerial decision based on the calculation the efficiency investment

project indicators by using the following data.

The enterprise is considering two alternative investment projects with the same

orientation. The project cycles for both projects are $5$ years that are required an initial

investment of $$100$ thousand. The flow of investment costs for the first project are fully

implemented in the first year of the project cycle, and for the second project $-$ in the

first and second year of the project cycle proportionately.

The projects are expected to generate $$150$ thousand. The cash inflows of the

projects are beginning from the third year of the project cycle evenly. The discount rate

for the first project is $10\%,$ for the second project is $12\%.$ Suggest recommendations for

improving the efficiency of the investment project.

Exercise $2.$

Management decided to take measures to optimize the activities of the enterprise.

To justify the adoption of management decisions, certain information is needed:

$1.$ Critical volume of activity.

$2.$ The number of units to receive a profit in amount of $$2500.$

$3.$ The volume of the profit according to a decreasing of variable costs by $10\%$

and fixed costs by $$500.$ The current sales volume remained unchanged.

$4.$ The price that must be set to make a profit of $$9500$ at the current sales

volume.

Make calculations based on the following data. The enterprise produces one type

of product. Fixed costs for the year are $$6000.$ The selling price per is unit $$16,$ variable

costs $-$ $$8$ per unit of output. Demand for products is quite high, the range of products of

the enterprise from $600$ to $2500$ units. The current sales volume is $1500$ units.