Quelpr

Capital Budgeting and Investment Appraisal · CAPE Accounting Unit 2

34 past-paper questions on Capital Budgeting and Investment Appraisal, part of Module 3: Planning and Decision Making, from every CAPE Accounting Unit 2 paper on Quelpr.

Practise Capital Budgeting and Investment Appraisal
  1. 3(b)(i)8 marks· CAPE Accounting Unit 2 · 2004 · Paper 2Prepare a schedule of expected cash flows.
  2. 3(b)(ii)6 marks· CAPE Accounting Unit 2 · 2004 · Paper 2Calculate the Net Present Value (NPV) of the closed-loop system.
  3. 3(b)(iii)1 mark· CAPE Accounting Unit 2 · 2004 · Paper 2State, with reason, whether the company should invest in the system.
  4. 3(b)(iv)4 marks· CAPE Accounting Unit 2 · 2004 · Paper 2Identify TWO non-financial factors that the company should consider in deciding whether to invest.
  5. 3(b)(i)12 marks· CAPE Accounting Unit 2 · 2006 · Paper 2Compute the Net Present Value of the three pieces of equipment.
  6. 3(b)(ii)1 mark· CAPE Accounting Unit 2 · 2006 · Paper 2Based on your calculations in part (i), state which is the most attractive opportunity for RG Wholesalers.
  7. 3(a)(i)6 marks· CAPE Accounting Unit 2 · 2010 · Paper 2Compute the payback period for EACH investment project.
  8. 3(a)(ii)15 marks· CAPE Accounting Unit 2 · 2010 · Paper 2Compute the net present value for EACH investment project.
  9. 3(a)(iii)3 marks· CAPE Accounting Unit 2 · 2010 · Paper 2Compute the profitability index for EACH investment project.
  10. 3(b)3 marks· CAPE Accounting Unit 2 · 2010 · Paper 2Rank the three investment projects based on the three measures computed in (a)(i) to (iii).
  11. 3(c)8 marks· CAPE Accounting Unit 2 · 2010 · Paper 2Briefly describe FOUR non-financial benefits that may accrue to the company if it decides to proceed with investment project B (emission reduction equipment).
  12. 3(a)4 marks· CAPE Accounting Unit 2 · 2012 · Paper 2Calculate the payback period for this investment.
  13. 3(b)4 marks· CAPE Accounting Unit 2 · 2012 · Paper 2Calculate the accounting rate of return.
  14. 3(c)4 marks· CAPE Accounting Unit 2 · 2012 · Paper 2Calculate the net present value of this investment if Mr Lee requires a minimum return of 20%, completing the given table.
  15. 3(d)5 marks· CAPE Accounting Unit 2 · 2012 · Paper 2What observations can you make about your findings in the answers (a), (b) and (c)?
  16. 3(f)5 marks· CAPE Accounting Unit 2 · 2012 · Paper 2Explain the term 'Internal Rate of Return (IRR)'.
  17. 3(g)(i)2 marks· CAPE Accounting Unit 2 · 2012 · Paper 2Other than non-financial considerations, what decision should a company take about a proposed project if the calculated Internal Rate of Return is higher than the company's cost of capital?
  18. 3(g)(ii)2 marks· CAPE Accounting Unit 2 · 2012 · Paper 2Other than non-financial considerations, what decision should a company take about a proposed project if the calculated Internal Rate of Return is lower than the company's cost of capital?
  19. 3(c)(i)3 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Explain the payback period project appraisal technique.
  20. 3(c)(ii)3 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Explain the internal rate of return (IRR) project appraisal technique.
  21. 3(c)(iii)3 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Explain the net present value (NPV) project appraisal technique.
  22. 3(a)(i)6 marks· CAPE Accounting Unit 2 · 2015 · Paper 2Calculate the net book value (NBV) of Equipment Y183.
  23. 3(a)(ii)3 marks· CAPE Accounting Unit 2 · 2015 · Paper 2Compute the initial investment associated with the proposed replacement of Equipment Y183 with Equipment X154.
  24. 3(a)(iii)6 marks· CAPE Accounting Unit 2 · 2015 · Paper 2Compute the payback period for Equipment X154.
  25. 3(a)(iv)8 marks· CAPE Accounting Unit 2 · 2015 · Paper 2Compute the net present value for the proposed replacement of Equipment Y183 with Equipment X154.
  26. 3(a)(v)2 marks· CAPE Accounting Unit 2 · 2015 · Paper 2State whether Bernice Industries should purchase Equipment X154 and explain why.
  27. 3(d)(i)7 marks· CAPE Accounting Unit 2 · 2017 · Paper 2Compute the net present value (NPV) of this investment.
  28. 3(d)(ii)2 marks· CAPE Accounting Unit 2 · 2017 · Paper 2Based on the NPV, state whether you would recommend that the machine be purchased and why.
  29. 3(d)(i)3 marks· CAPE Accounting Unit 2 · 2019 · Paper 2Distinguish among the THREE given methods for evaluating investment decisions.
  30. 3(d)(ii)2 marks· CAPE Accounting Unit 2 · 2019 · Paper 2Calculate the payback period for Project A.
  31. 3(d)(iii)4 marks· CAPE Accounting Unit 2 · 2019 · Paper 2Calculate the NPV for Project B.
  32. 3(d)(iv)2 marks· CAPE Accounting Unit 2 · 2019 · Paper 2Suggest, using the NPV criterion, which project should be recommended to Unique Design, giving ONE reason.
  33. 3(d)(i)7 marks· CAPE Accounting Unit 2 · 2021 · Paper 2Calculate the net present value of the machine purchase.
  34. 3(d)(ii)4 marks· CAPE Accounting Unit 2 · 2021 · Paper 2Determine the discounted payback period.

Related topics in Module 3: Planning and Decision Making