题目内容

Interest is charged on an overdraft at 1.5% per month. What is the Annual Percentage Rate (APR) of this overdraft?

A. 18%
B. 17.8%
C. 19.6%
D. 21.4%

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A company has entered into a contract that will produce cash inflows or $28,000 per annum for four years. If interest rates are 10%, what is the present value of the cashflow?

A. $88,760
B. $97,608
C. $106,120
D. $90,692

A company is considering buying a second machine for its manufacturing operation. The machine will cost $275,000 and, cash inflows created by having the second machine will be as follows for the next five years.What is the net present value (NPV) if the discount rate is 12%?

A. $112,830
B. $(112,830)
C. $(94,750)
D. $94,750

A company receives 30 days of credit from its suppliers. Inventory turnover averages 15 days. Trade receivables are given 45 days credit. What is the working capital cycle of the company?

A. 90 days
B. 30 days
C. 60 days
D. 0 days

Using accruals accounting, which TWO of the following would be included in the 20X1 accounts?

A. The cost of a new machine purchased in X2
B. An electricity bill for October X1 to December X1 payable in January X2
C. December X1 sales invoices for which cash has not been received at the year end
D. The rent invoice for quarter 1 X2 received in December X1

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