1. A firm with an operating cycle of 50 days and a cash conversion cycle of 30 days, has an average payment period of … days.A. -80B. -20C. 20D. 802. W Ltd. has an average age of inventory of 60 days, an average collection period of 20 days and an average payment period of 30 days. Calculate the firm’s cash conversion cycle.A. 110 daysB. 50 daysC. 70 daysD. 10 days3. The financial manager is evaluating two new projects. The firm has a cost of capital of 8%. The two projects are expected to have the following cash flows:Year Project A (R) Project B (R)1 -50 000 -80 0002 20 000 40 0003 30 000 30 0004 10 000 30 000What is the profitability index for Project A:A. 1,13B. 1,04C. 1,20D. 0,044. P Ltd. is evaluating two mutually exclusive investment projects for the next financial year. The firm’s cost of capital is determined at 9%. The information pertaining to the two projects is as follows:Year Project X Project Y0 (-R80 000) (-R25 000)1 R5 000 R5 0002 R10 000 R5 0003 R20 000 R5 0004 R40 000 R5 0005 R50 000 R5 000The net present value (NPV) of Project X is …A. R4 640,60B. R10 235,78C. R9 281,20D. R50 000,00

1. A firm with an operating cycle of 50 days and a cash conversion cycle of 30 days, has an average payment period of … days.A. -80B. -20C. 20D. 802. W Ltd. has an average age of inventory of 60 days, an average collection period of 20 days and an average payment period of 30 days. Calculate the firm’s cash conversion cycle.A. 110 daysB. 50 daysC. 70 daysD. 10 days3. The financial manager is evaluating two new projects. The firm has a cost of capital of 8%. The two projects are expected to have the following cash flows:Year Project A (R) Project B (R)1 -50 000 -80 0002 20 000 40 0003 30 000 30 0004 10 000 30 000What is the profitability index for Project A:A. 1,13B. 1,04C. 1,20D. 0,044. P Ltd. is evaluating two mutually exclusive investment projects for the next financial year. The firm’s cost of capital is determined at 9%. The information pertaining to the two projects is as follows:Year Project X Project Y0 (-R80 000) (-R25 000)1 R5 000 R5 0002 R10 000 R5 0003 R20 000 R5 0004 R40 000 R5 0005 R50 000 R5 000The net present value (NPV) of Project X is …A. R4 640,60B. R10 235,78C. R9 281,20D. R50 000,00

1. A firm with an operating cycle of 50 days and a cash conversion cycle of 30 days, has an average payment period of … days.A. -80B. -20C. 20D. 802. W Ltd. has an average age of inventory of 60 days, an average collection period of 20 days and an average payment period of 30 days. Calculate the firm’s cash conversion cycle.A. 110 daysB. 50 daysC. 70 daysD. 10 days3. The financial manager is evaluating two new projects. The firm has a cost of capital of 8%. The two projects are expected to have the following cash flows:Year Project A (R) Project B (R)1 -50 000 -80 0002 20 000 40 0003 30 000 30 0004 10 000 30 000What is the profitability index for Project A:A. 1,13B. 1,04C. 1,20D. 0,044. P Ltd. is evaluating two mutually exclusive investment projects for the next financial year. The firm’s cost of capital is determined at 9%. The information pertaining to the two projects is as follows:Year Project X Project Y0 (-R80 000) (-R25 000)1 R5 000 R5 0002 R10 000 R5 0003 R20 000 R5 0004 R40 000 R5 0005 R50 000 R5 000The net present value (NPV) of Project X is …A. R4 640,60B. R10 235,78C. R9 281,20D. R50 000,00