Question (2): Use the following data and information to determine the best choice for each of the following statements from no. 7 to n0.22 : On December, 2022, Company FCES arranged a meeting for reaching an investment decision. One of two mutually exclusive projects (X) and (Y) is to be nominated for acceptance. The company canarrange enough finance to establish only one of them. Project (X): requires one establishment year followed by seven operating years. The total investment cost is L.E 10 million and net residual value of L.E 1.146 million will be expected at the end of Y% The first five operating years of project (X) will be exempted from the 20% income tax. The expected income statement of the operating years of project (X) is as follows in L.E million: No credit sales will be allowed by project (X) and all the "Current Operating Cash wown war de paid cash when it will be incurred. Project 1 : requires one establishment year followed by seven operating years, the NCFs of - The discount rate of FCES Company is currently 17%. (For quidance: See the Present Value (PV) of L.E 1 ot the end of the examination paper.Page 4). 7. The "Principal of Loan" which will be obtained by FCES Company before the start of Y1 to acquire project (x) will be in L.E million: a. 4.5 (b.) 5 c. 5.4 8. For project (X), by using the direct way to conpute the NCF from the project's view, the "Total of the Cash in-flows in Y7 will be in L.E million: a. 5 b. 5.09 (c) 6.236 \begin{tabular}{ll|l|l|} 9. For project (X), by using the direct way to compute the NCF from the project's view, the "Total \end{tabular} of the Cash Out-flows in Y6" will be in L.E militon: 10. For project (X), by using the direct way to compute the NCF from the project's view, the " NCF at the end of Y5 will be in L.E million: a. (10) b. 3.386 c. 2.24 11. For project (X), by using the direct way to compute the NCF from the project's view, the " NCF at the end of Y7 will be in L.E million: a. (10) b. 3.386 c. 2.24 (d) 2.5 12. For project (X), by using the direct way to compute the NCF from the project's view, the "Accumulated NCF at the end of Y6 " will be in L.E million: (a.) 4.74 b. 2.5 c. 8.126 d. Zero 13. For project (X), the "Pay-back Period" from the project's view after Y - 1 will be: \begin{tabular}{l|l|l|l|l|} a. Two operating years & (6. Three operating & c. Four operating & d. About 53 months \end{tabular} and about 5 months years years exactly of operation 14. For project (Y), the "Pay-back Period" from the project's view after Y-1 will be: \begin{tabular}{l|l|l|l|l|} a. Three operating years & b. Three operating & C. Five operating years & d. About 73 months \end{tabular} and about 5 months years and about 3 months of operation Model (1) Page 2 of 4 Question (2): Use the following data and information to determine the best choice for each of the following statements from no. 7 to n0.22 : On December, 2022, Company FCES arranged a meeting for reaching an investment decision. One of two mutually exclusive projects (X) and (Y) is to be nominated for acceptance. The company canarrange enough finance to establish only one of them. Project (X): requires one establishment year followed by seven operating years. The total investment cost is L.E 10 million and net residual value of L.E 1.146 million will be expected at the end of Y% The first five operating years of project (X) will be exempted from the 20% income tax. The expected income statement of the operating years of project (X) is as follows in L.E million: No credit sales will be allowed by project (X) and all the "Current Operating Cash wown war de paid cash when it will be incurred. Project 1 : requires one establishment year followed by seven operating years, the NCFs of - The discount rate of FCES Company is currently 17%. (For quidance: See the Present Value (PV) of L.E 1 ot the end of the examination paper.Page 4). 7. The "Principal of Loan" which will be obtained by FCES Company before the start of Y1 to acquire project (x) will be in L.E million: a. 4.5 (b.) 5 c. 5.4 8. For project (X), by using the direct way to conpute the NCF from the project's view, the "Total of the Cash in-flows in Y7 will be in L.E million: a. 5 b. 5.09 (c) 6.236 \begin{tabular}{ll|l|l|} 9. For project (X), by using the direct way to compute the NCF from the project's view, the "Total \end{tabular} of the Cash Out-flows in Y6" will be in L.E militon: 10. For project (X), by using the direct way to compute the NCF from the project's view, the " NCF at the end of Y5 will be in L.E million: a. (10) b. 3.386 c. 2.24 11. For project (X), by using the direct way to compute the NCF from the project's view, the " NCF at the end of Y7 will be in L.E million: a. (10) b. 3.386 c. 2.24 (d) 2.5 12. For project (X), by using the direct way to compute the NCF from the project's view, the "Accumulated NCF at the end of Y6 " will be in L.E million: (a.) 4.74 b. 2.5 c. 8.126 d. Zero 13. For project (X), the "Pay-back Period" from the project's view after Y - 1 will be: \begin{tabular}{l|l|l|l|l|} a. Two operating years & (6. Three operating & c. Four operating & d. About 53 months \end{tabular} and about 5 months years years exactly of operation 14. For project (Y), the "Pay-back Period" from the project's view after Y-1 will be: \begin{tabular}{l|l|l|l|l|} a. Three operating years & b. Three operating & C. Five operating years & d. About 73 months \end{tabular} and about 5 months years and about 3 months of operation Model (1) Page 2 of 4