FIN 3702 Past Exam memos.
section A Q1 2 initial investment Cost (200 000) Net working capital 5000 Inventory 3000 Receivables 2000 Payables 4000 Accruals 6000 Initial investments Q2 3 OCF = NOPAT + depreciation NOPAT = revenue 30000 Operating cost 13000 Marketing cost are irrelevant Depreciation 40000 EBIT 23000 Tax NOPAT 16100 OCF = 16100 + 40000 =23900 Q4 2 NB: for a replacement decision you must use incremental operating cash flow i.e. OCF truck --- OCF van Year 1 7500 + 1100 – (6000+980) = 1620 2 7500 +1100 - (5100 + 980) = 2520 3 8000 + 1100 – (6500+980) = 1620 4 6000 +1100 – 0 =7100 Then compute NPV CFO = Co1 =1620 Co2 = 2520 Co3 = 1620 Co4 = 7100 I = 10% NPV = .08
Geschreven voor
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- University of South Africa
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- FIN3702 - Working Capital Management
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fin 3702 past exam memos 100 correct ans
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fin 3702 past exam memos