Section B Answer ALL questions. All questions carry equal marks. 1. Smart Corporation has an average collection period of 74 days. What is debtor turnover ratio for Smart Corporation? Use a 360-day year. 2. 3. The Sun Lee Co. has a receivables turnover rate of 11.5, a payables turnover rate of 9.8, and an inventory turnover rate of 13.6. What is the length of the firm's operating cycle (in days)? Use a 365-day year. The Winters Co. has annual sales of RM918,700. Cost of goods sold is equal to 55 percent of sales. The firm has an average accounts payable balance of RM72,400. How many days on average does it take The Winters Co. to pay its suppliers? Determine the effective annualized cost of foregoing the discount on terms 2/10 net 45 (round to nearest 0.01%). Use a 360-day year. Macchu Ltd is about to undertake a project and has computed the NPV of the project using a variety of discount rates: 4. 5. Discount rate used 10% 15% 20% NPV +RM130,000 +RM50,000 -RM50,000 6. What is the approximate IRR of this project? A project that has been tested for its feasibility has already incurred market research costs of RM50,000. The actual cost of the asset is RM100,000 and the project is expected to yield the following returns: Year 1 Year 2 Year 3 RM90,000 RM80,000 RM70,000 7. If the discount rate is 12%, what is the NPV of the project? A project costs RM29,000 and is expected to have a useful life of three years at which points its scrap value will be RM5,000. The project is expected to yield net profits of RM1,000 per annum over its useful life. Using the average book value of the asset, calculate the accounting rate of return