V1024 with date.pdf = Open with Google Docs Yara Casanows (CF) RM 20,000 2 25,000 3 30,000 4 35,000 5 40,000 i. Calculate the payback period for the proposed investment. (4 marks) ii. Calculate the net present value (NPV) for the proposed investment. (5 marks) iii. Calculate the profitability index (PI) for the proposed investment. (4 marks) c) Define cash conversion cycle and operating cash cycle. (4 marks) d) Tenaga Berhad wishes to evaluate its cash conversion cycle (CCC). Research done by one of the firm's financial analysts indicates that on average the firm holds items in inventory for 55 days pays its suppliers 35 days after purchase, and collects its receivables after 45 days. The firm's annual sales (all on credit) are about RM1.5 billion, its cost of goods sold represent about 60 percent of sales, and purchases represent about 40 percent of cost of goods sold. Assume a 365-day year. Calculate Tenaga Berhad's operating cycle (OC) and cash conversion cycle (CCC), (4 marks) Page 38 @ + TOTAL: 25 MARKS) V1024 with date.pdf = Open with Google Docs Yara Casanows (CF) RM 20,000 2 25,000 3 30,000 4 35,000 5 40,000 i. Calculate the payback period for the proposed investment. (4 marks) ii. Calculate the net present value (NPV) for the proposed investment. (5 marks) iii. Calculate the profitability index (PI) for the proposed investment. (4 marks) c) Define cash conversion cycle and operating cash cycle. (4 marks) d) Tenaga Berhad wishes to evaluate its cash conversion cycle (CCC). Research done by one of the firm's financial analysts indicates that on average the firm holds items in inventory for 55 days pays its suppliers 35 days after purchase, and collects its receivables after 45 days. The firm's annual sales (all on credit) are about RM1.5 billion, its cost of goods sold represent about 60 percent of sales, and purchases represent about 40 percent of cost of goods sold. Assume a 365-day year. Calculate Tenaga Berhad's operating cycle (OC) and cash conversion cycle (CCC), (4 marks) Page 38 @ + TOTAL: 25 MARKS)