Test 2 Solutions (CFM22A2 AO2 April 2014 Memo)

Department of Commercial Accounting

Cost and Financial
CFM22A2
TEST
25-Apr-14

Time: 90 minutes
Marks: 50
Assessors: Mrs L Boyce,Mr D du Plessis, Mrs L Joubert, Mrs L Pelcher
Moderator: Mr R Boersma (Internal)




Question Topic Marks Time
1 Time Value of Money 20 36 minutes
2 Bonds 20 36 minutes
3 Share Valuations 10 18 minutes
50 90 minutes
50 90 minutes

, Question 1 (20 Marks)

1.1 END 3 Marks
n 5 ½
I/Y 6 ½
PV R 40 000.00 ½
PMT 0 ½
CPT FV R 53 529.02 P



1.2 3 Marks
n 24 ½
I/Y 0.83 ½
PV R 10 000.00 ½
PMT 500 ½
CPT FV R 25 427.37 P R 25 412.49


1.3 4 Marks
CF 0 FV N i PV
CF R 50 000.00 P R 50 000.00 1 20% R 41 666.67 P
CF R 45 000.00 P R 45 000.00 2 20% R 31 250.00 P
CF R 60 000.00 R 60 000.00 3 20% R 34 722.22 P
OR
R 107 638.89
I/Y 20% P

NPV R 107 368.89 P




1.4 PV = 250 .15-0.05 P 2 Marks
R 2 500 000.00 P