MNB1601 Assignment 3 2024

1. UNISA
2. 2024
3. MNB1601-24-S1
4. Welcome to MNB1601!
5. Assessment 3



QUIZ

Assessment 3
Open course index
Open block drawer
Started on Wednesday, 3 April 2024, 6:39 PM
State Finished
Completed on Tuesday, 9 April 2024, 9:44 PM
Time taken 6 days 3 hours
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
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Question text
Calculate the total present value of the following cash flow amounts received at the end of
each year. The interest rate is 10%. (Round up your answer to the nearest Rand)


Year Cash flow
1 R3 000
2 R2 000
3 R5 000


Use the following tables, containing the discounting factors, as needed for this question:


Discounting factors to calculate present values

5% 10% 15%
Periods
1 0,9524 0,9091 0,8696
2 0,9070 0,8264 0,7561
3 0,8638 0,7513 0,6575
4 0,8227 0,6830 0,5718
5 0,7835 0,6209 0,4972
6 0,7462 0,5645 0,4323

,Discounting factors to calculate future values

5% 10% 15%
Periods
1 1,0500 1,1000 1,1500
2 1,1025 1,2100 1,3225
3 1,1576 1,3310 1,5209
4 1,2155 1,4641 1,7490
5 1,2763 1,6105 2,0114
6 1,3401 1,7716 2,3131


Select one:

a.
R8 137

b.
R7 409

c.
R7 513

d.
R8 990
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The correct answer is: R8 137

Question 2
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Study the information from IBM’s financial statements below:


Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Current assets R 48 116 000 R 48 935 000 R 49 004 000
Current liabilities R 40 562 000 R 36 002 000 R 42 435 000
Inventory R 2 450 000 R 2 494 000 R 2 701 000
Owners’ equity R56 455 000 R55 932 000 R53 657 000
Total liabilities R 90 405 000 R 86 385 000 R 96 058 000
Total assets R 113 452 000 R 109 022 000 R 109 524 000
Net income R 14 833 000 R 13 425 000 R 12 334 000
Net profit R 46 014 000 R 43 785 000 R 45 661 000

, Sales R 99 870 000 R 95 758 000 R 103 630 000


What is the return on owners’ equity (ROE) for the year 2019?
Select one:

a.
24%

b.
1,95:1

c.
78%

d.
1,54:1
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The correct answer is: 78%

Question 3
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IBM’s sales would be indicated on the statement of financial __________ and is also known as
________ income.
Select one:

a.
position; gross

b.
position; net

c.
performance; net

d.
performance; gross
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The correct answer is: performance; gross

Question 4
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, The net present value (NPV) helps a company decide whether it should pursue certain investment
opportunities or not. Which one of the following would be the decision criteria for a large shopping mall
if the NPV is found to be 0?
Select one:

a.
Accept – the initial investment amount and an addition to the value of the business can be sustained by
the cash flow of the project.

b.
Accept – the initial investment amount can be sustained by the cash flow of the project, although no
addition to the value of the business is made.

c.
Reject – the initial investment amount cannot be redeemed by the cash flow of the project.

d.
Reject – the initial investment amount can be sustained by the cash flow of the project, but no addition to
the value of the business is made.
Feedback
The correct answer is: Reject – the initial investment amount can be sustained by the cash flow of the
project, but no addition to the value of the business is made.

Question 5
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The following information is supplied for Hetisani Ltd. for the month of October 2020:


Fixed assets R1 000 000


Current assets:
Cash R80 000
Marketable securities R100 000
Inventory R500 000
Debtors R300 000


Shareholder’s capital R700 000
Long-term debt R250 000
Current liabilities R300 000


The acid-test ratio for Hetisani Ltd. would be _________________ .
Select one:

a.
1.7:1