Final Exam

Marina toll road project's capital invested is $678.500.000 and projected to earn net cash flows as follows: -14.000.000 on year 1, 20.000,000 year 2 and increased by 50% until year 5. From year 5 until year 10, the free cash flow is expected to increased by 40%. The expected rate of return (discount rate) is 7%. How much the NPV?

• £173,907,752.33

• £638,429,385.50

• £394,941,255.30

• £11,582,332.19

• £37,750,556.49

You have Rp.80 million in your pocket and your friends offers you an investment opportunity. Andi's project promises to give 20 million returns at year 1 and increased by 5% until year 6. Ira's offers 15 million returns at year 1 and increased by 15% until year 6. Aziz offers 20 million returns at year 1 and will be increased by 2 million every 2-year period, until year 6. Which project that you will choose to invest?

• Andi

• Ira

• Aziz

The project total investment is $120.000 with 6 years returns, start at $24.000 on year 1 and increased by 10% per year. How much the IRR is? (NO COMA, percentage format, example: 6%, 7%, etc)

The project capital cost is $175.000. The projected revenue for 6 years period are $38.700 (year 1), 39.000, 42.000, 50.000, 75.000, 80.000 (year 6). The projected expense are $6.200 on year 1 and will be increased by 5% per year until year 6.

if the discounted rate of return is 7%, how much the NPV?

• 44,890.40

• 41,261.26

• 74,442.95

Performance evaluation is important to be seriously designed because

• It is complex and related with pride.

• it is dilemmatic, sensitive, and relates with fairness

• it is dilemmatic, complex, and relates with pride

• it is dilemmatic, subjective, and relates with judgement

Department B revenue performance is $29.765.000 from $50.000.000 of total company investment. The cost of good sold incurred is $17.980.000 while the general and administrative expense is $3.600.000., The performance is measured by income before tax, with rate of 5%. How much the return on investment of department B?

• 23.57%

• 22.75%

• 16.37%

• 15.55%

Department B revenue performance is $29.765.000 from $50.000.000 of total company investment. The cost of good sold incurred is $17.980.000 while the general and administrative expense is $3.600.000., The performance is measured by income before tax, with rate of 5%. IF the required rate of return is 8% (RRR). How much the residual income? No COMA. only numbers

Mommy.Oenyi is selling cookware from vendor to consumers. This month revenue this month is Rp.45.700.000 from the credit transaction, and Rp.20.000.000 from the cash transaction. The gross profit margin is 15%. This month, mommy.oenyi general and admin expense is Rp.2.350.000 for paying the admin and packing pheriperals.

How many percent the Return on Sales? (2 numbers after coma, with %, example: 7,41%)

The cost of production is $8/pcs. The selling department want to sell it to buying department for $11. The market price data is none available since the product is unique. As the buying department only able to sell it for $12.5/pcs, purchasing the item from selling department at $11 might be hard for them. Which transfer pricing method that might over win win solution?

• Cost based transfer pricing

• market based transfer pricing

• Hybrid transfer pricing

This transfer pricing method is suitable to be implemented when the market is perfectly competitive. It promotes goal congruence, motivates management effort, evaluates the performance of subunits, and preserves their autonomy.

• Cost based transfer pricing

• full cost transfer pricing

• hybrid transfer pricing

• negotiated transfer pricing

• market based transfer pricing