Finance and Financial Analysis: Study Material with Solved Assignments

FINANCEANDFINANCIAL
ANALYSIS

Table of Contents
Question 1....................................................................................................................................4
Question 2....................................................................................................................................4
Question 3....................................................................................................................................4
Question 4....................................................................................................................................5
Question 5....................................................................................................................................6
Question 6....................................................................................................................................6
REFERENCES................................................................................................................................7

Question 1
Revenue Discounted factor PV of cash inflow
950 0.8695652174 826.0869565217
Initial Investment 500
NPV 326.0869565217
This project should be accepted as the net present value of the project derive to be
positive in number. The concept of net present value favour such investment that can generate
the positive present value from the investment (Liu and et.al., 2019). The current investment
project will lead to a net benefit of 326 which is positive. The inflow is more than the outflow
from the investment that make the project favourable for the investor.
Question 2
Break even point
Fixed cost 800
Contribution per unit 5
Break even point 160
Contribution 5
Contribution margin ratio
Contribution / sales *100
Contribution 5
Sales 25
Margin ratio 2