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Exercise-Analysis Part 1
Exercise-Analysis Part 1
Sunshine Supermarket is considering of having stock system at the mall. The system would
cost RM4,300,000 and have an eight-year useful life with no salvage value. The
company’s discount rate is 10%. Incremental revenues and costs associated with the
efficiency of the system would be as follows:
RM
Sales 1,000,000
Variable expenses 90,000
Contribution margin 910,000
Fixed expenses:
Salaries 30,000
Maintenance 20,000
Depreciation 20,000
Total fixed expenses 70,000
Net operating income 840,000
Required:
a) Compute the annual net cash inflow.
b) Compute the net present value. Should the supermarket purchase the vending
machine? Why?
c) Find the internal rate of return to the nearest whole percent.
d) Compute the payback period for the vending machine.
e) Compute the simple rate of return of the vending machine.
C4-Q3: MIND MAPPING EXERCISE
Viper-IT Entreprise’s human resource manager fails to control and organize the employees and enforces existing procedures due to lack of
organizational skills (as illustrate below). As one of the senior manager at the organisation, do you think that it is necessary to plan for having
a good AIS to counter the problem.
By using the mind mapping, provide your answers to why do you think Viper-IT need or does not need to have an AIS?
yes, the company need the new AIS
FEASIBILITY
STUDY