Forums › ACCA Forums › ACCA FM Financial Management Forums › Help in solving this financial management problem
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- June 1, 2015 at 7:18 pm #251622
Dear All,
I am new to the financial management course and i need your help in solving this problem as given below. Also make me to understand this problem.
Waiting for your kind help. Thank you.
Regards,
Sunny.XYZ Bakers – a growing food processing firm in Pakistan having high market share is planning to invest further in its baking facility to gain more market share. The firm’s finance manager has identified the following two independent proposals accompanied by the related cash flows:
Proposal Life (Yrs.) Discount Rate Co C1 C2 NPVA 2 11% 80 52 61 16.09
B 1 11% 72 88 – 7.27Requirement
Considering the above information, answer the following:1) Is the available information is sufficient enough to decide on any proposal” If not, what other information would like to include in the above?
2) Using the given information in the above table only, select the proposal giving appropriate support to your selection?Necessary calculations must be provided.
June 3, 2015 at 1:12 pm #252453Kindly post your question in “Ask the tutor” section, and it would be attended to by the tutor.
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