QUESTION 4 (25 MARKS) b) Assuming that the NPV for bus A is RM18,900, calculate the NPV of Dinar Berhad is located in Bayan Lepas where a market is held regularly. It decided to purchasing bus B. buy a bus to take passengers to and from the market. It is estimated that 200 tickets could (3 marks) be sold a doy for RM4 each. breakdowns and maintenance. it would also require more money to be spent on repairs. c) Calculate the ARR of purchasing bus B. (4 marks) d) Advise Dinar Berhad which bus it should buy. Justify your answer. (6 marks) e) State one method of investment appraisal (other than NPV and ARR) which a business could use. (2 marks) END OF ASSIGNMENT 2 Other running costs were expected to the same for both buses. Dinar Berhad uses a cost of capital of 10% a) Caiculate the difference in NPV between purchasing bus A and bus B. (10 marks) Page 6 of 7 Page 7 of 7 QUESTION 4 (25 MARKS) b) Assuming that the NPV for bus A is RM18,900, calculate the NPV of Dinar Berhad is located in Bayan Lepas where a market is held regularly. It decided to purchasing bus B. buy a bus to take passengers to and from the market. It is estimated that 200 tickets could (3 marks) be sold a doy for RM4 each. breakdowns and maintenance. it would also require more money to be spent on repairs. c) Calculate the ARR of purchasing bus B. (4 marks) d) Advise Dinar Berhad which bus it should buy. Justify your answer. (6 marks) e) State one method of investment appraisal (other than NPV and ARR) which a business could use. (2 marks) END OF ASSIGNMENT 2 Other running costs were expected to the same for both buses. Dinar Berhad uses a cost of capital of 10% a) Caiculate the difference in NPV between purchasing bus A and bus B. (10 marks) Page 6 of 7 Page 7 of 7