Finance and Accounting

Running Head: FINANCE AND ACCOUNTING
FINANCE AND ACCOUNTING
Name of the Student
Name of the University
Author Note

1FINANCE AND ACCOUNTING
Table of Contents
Answer to Question 1.................................................................................................................2
Answer to Question 2.................................................................................................................2
Answer to Question 3.................................................................................................................2
Answer to Question 4.................................................................................................................2
Answer to Question 5.................................................................................................................2
Answer to Question 6.................................................................................................................2
Answer to Question 7.................................................................................................................2
Answer to Question 8.................................................................................................................3
Answer to Question 9.................................................................................................................3
Answer to Question 10...............................................................................................................3
Answer to Question 11...............................................................................................................3
Answer to Question 12...............................................................................................................3

2FINANCE AND ACCOUNTING
Answer to Question 1
As showing in the below table that the return generating from both the business is
same. However, the first option is better because it has EBITDA margin, that is average and
the volume of revenue is also double as compare to the second option in which the EBITDA
margin is high, that may not be sustainable in long run and revenue is also less than first
option.
Revenue 2
EBITDA Margins 30%
EBITDA 60%
First Option
Figure 1: EBITDA
Revenue 1
EBITDA Margins 60%
EBITDA 60%
SecondOption
Figure 2: EBITDA
Answer to Question 2
The other big expenses that the company should closely examine should be the
expenses of depreciation and expenses of the fuel and electricity. These two expenses are also
very important as increase in the expenses of business operations by depreciating the value of
the fixed assets. In addition, electricity and fuel is also important as it also adds the major
expenses of the company.
Answer to Question 3
a)