Question: please assist QUESTION 1 (25 Marks) 1.1 Your parents set up a trust fund for you 22 years ago that is now worth R47866,34. If


QUESTION 1 (25 Marks) 1.1 Your parents set up a trust fund for you 22 years ago that is now worth R47866,34. If the fund earned 8% per year, how much did your parents invest? (5) 1.2 Suppose you are offered an investment that will allow you to double your money in 9 years. You have R20000 to invest. What is the implied rate of interest? (7) 1.3 Suppose you have a 4-year-old son and you want to provide R55 000 in 16 years towards his college education. You currently have R5 000 to invest. What interest rate must you earn to have the R55 000 when you need in? (7) 1.4 Suppose you want to buy a new house. You currently have R30 000 and you figure you need to have a 10% down payment plus an additional 5% of the loan amount in closing costs. If the type of house you want costs about R450 000 and you can eam 7.5% per year, how long will it be before you have enough money for the down payment (6) and closing costs? QUESTION 2 (25 Marks) Peart Limited is considering upgrading its plant to expand it client base. The financial detals of the investment proposal are as follows: The company uses straight-line depreciation. The cost of capital for projects of similar risk is 18%. Ignore taxation. Required: 2.1 Calculate the investment's Accounting Rate of Retum (ARR). (5) 2.2 Brially explain if the ARR is acoeptable or not based on a target rate of retum of 25%. (2) 2.3 Assume a payback period of 3 years. Determine the payback period and state if the investment is acceptable or not. (5) 2.4 Calculate and comment on the viability of the proposed investment based on the net present value (NPV) method. (8) 2.5 Discuss whether the advantages of using the NPV method outweigh the disadvantages. (5) INFORMATION Sammy Lid manufactures calculators. The following information was extracted from the budget for the year ended 31 December 2023: 3.2.Required Calculate the following from the information provided below: 3.2.1. Net profit or loss (3) 3.2. The number of units that must be sold to obtain a profit of R1 000000 . (4) INFORMATION QUESTION 4 (25 Marks) 4.1REQUIRED Uso the information provided to calculate and comment on the following ratios for 2023. Whece relevant, round off answers to two decimal places. 4.1.1 Current ratio (4) 4.1.2 Acid test ratio (4) 4.1.3 Inwertory tumover (4) 4.1.4 Debtor collection period (4) 4.1.5 Credtor payment period (4) INFORMATIN Extracts of the financial statements of Sani-Tech Limited for 2023 are provided below. Sani- Tech Limited Extract of Statement of Comprehensive Income for the year ended 28 February 2023 4.2 You have been recently appointed as tha Accounting officer for Casio Enterprises. You have been tasked with addressing the high level of delinquent accounts on the books. Explain FNE (5) ways to collect overdve accounts
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