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FIN2603-26-EX10

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A project has the following possible cash flow outcomes:

Outcome (R) Probability (P)
R20 0000.25
R35 0000.50
R50 0000.25
  

 What is the standard deviation (σ)?

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A project has the following possible cash flow outcomes:

Outcome (R)Probability (P)
R12 0000.30
R28 0000.40
R44 0000.30

 What is the standard deviation (σ)?

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A project has the following possible cash flow outcomes:

Outcome (R)Probability (P)
R20 0000.25
R35 0000.50
R50 0000.25

What is the expected value (EV)?

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A project has the following possible cash flow outcomes:

Outcome (R)Probability (P)
R14 0000.30
R25 0000.40
R50 0000.30

What is the expected value?

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0%
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Mr Parker has arranged for a 60-day loan at an annual interest rate of 9.5%. If the loan amount is R1 000 000, how much interest will Mr Parker pay in rand terms? (Assume a 360-day year)

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Calculate the EOQ based on the following information: 21 000 units used annually, purchased at R65 per unit. Order cost is R340 per order. Carrying cost is 9% of inventory value.
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Calculate the EOQ given the following information:18 506 units used annually, purchased at R55 per unit.Order cost is R336 per order.Carrying cost is 9% of inventory value.
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A company has a cash conversion cycle of 50 days. Annual outlays are R9 million and the cost of negotiated financing is 9%. Calculate its annual savings if the company reduces its average age of inventory by 15 days. Assume 360 days per year.
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The cost of giving up cash discount under the terms of sale 2/10 net 35 is ... (assume a 360-day year)
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The conversion of current assets from inventory into receivables and into cash provides the … of cash used to pay the current liabilities, which represents a (an) … of cash.
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