Crowdly
Add to Chrome
EBAD401: Financial Management (2025)
Looking for EBAD401: Financial Management (2025) test answers and solutions? Browse our comprehensive collection of verified answers for EBAD401: Financial Management (2025) at funda.mandela.ac.za.
Get instant access to accurate answers and detailed explanations for your course questions. Our community-driven platform helps students succeed!
A project will increase sales by R140 000 and cash expenses by R95 000. The project will cost R100 000 and be depreciated using the straight-line method to a zero book value over the 4-year life of the project. The company has a marginal tax rate of 34%. What is the value of the depreciation tax shield? Hint: Calculate depreciation first and multiply your answer by...
0%
0%
0%
0%
100%
View this question
As Financial Manager you are considering a new project for your company. The variable cost per unit is R4.20 and the contribution margin is R5.60. The project also has projected depreciation of R720, operating cash flow of R4 000, fixed costs of R6 000, and total sales of R11 760. What is the accounting break-even point?
0%
0%
0%
0%
0%
View this question
At a production level of 5 600 units a project has total costs of R89 000. The variable cost per unit is R11.20. What is the amount of the total fixed costs if the production level is increased to 6 100 units without increasing the total fixed assets?
0%
0%
0%
100%
0%
View this question
You are the financial manager of Gear Assemblers (Pty) Ltd. You need to evaluate two mutually exclusive projects with the following cash flows: Year Project A (CFs in Rands) Project B (CFs in Rands) 0 -250 000 -130 000 1 35 500 30 000 2 35 000 42 500 3 18 500 39 000 4 450 000 160 500 The applicable discount rate for both these two projects is 15%. The IRR of Project B is ______
100%
0%
0%
0%
0%
View this question
Use the following information to answer this question: You have been appointed as the financial manager of Sunshine Africa Media (Pty) Ltd. You need to evaluate project A with the following cash flows:
The applicable discount rate for the project is 9%. Using the PV tables provided previously on Moodle, the discounted payback period for project A is ____________
| Year | Project A (CFs in Rands) |
| 0 | -100 000 |
| 1 | 45 000 |
| 2 | 35 000 |
| 3 | 56 000 |
| 4 | 100 000 |
0%
0%
0%
0%
0%
View this question
After the Mvelaphanda Group paid a dividend of R2.50 per share, they pledged to increase their dividend by 5% every year indefinitely. Investors require a 10% return on investment. As a potential investor of Mvelaphanda Group you have calculated that your dividend in year six will be__________
0%
0%
0%
0%
0%
View this question
You are considering a new project. The project has projected depreciation of R720, operating cash flow of R4 000, fixed costs of R6 000, and total sales of R11 760. The variable cost per unit is R4.20 and the contribution margin is R5.60. What is the cash break-even level of production? Round off to the nearest whole number.
0%
0%
0%
0%
0%
View this question