In 2021 the company purchased direct raw material RM45,000, and direct labor cost RM31,000: corporate finance Assignment, QMUL, UK

University Queen Mary University of London (QMUL)
Subject Corporate Finance

CORPORATE FINANCE TEST (25%)

QUESTION 1

Explain 4 (FOUR) quality cost with examples.                                           (10 marks)

 

QUESTION 2

In 2021 the company purchased direct raw material RM45,000, and direct labor cost RM31,000. Prepare Cost of goods sold schedule for the company.

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QUESTION 3

Using above information prepare following budget:

  1. Production budget
  2. Direct material Budget
  3. Direct labor budget

 

QUESTION 4

Belton Sdn Bhd is considering one of the two mutually exclusive projects, 7-ELEVEN and SPEEDMART. The company’s discount rate is at 6%. The expected after tax cash flows for both projects are as follows:

As the company’s financial manager, you are required to:

  • Calculate the payback back period for project 7-Eleven and
  • Calculate the Net Present Value for project 7-Eleven and
  • Calculate the Internal rate of return for p project 7-ELEVEN and Speedmart.
  • Determine the best project that Belton Sdn Bhd should invest Justify your answer.

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