CORPORATE FINANCE TEST (25%)

QUESTION 1

Explain 4 (FOUR) quality cost with examples.                                           (10 marks)

QUESTION 2

In 2021 the company purchased direct raw material RM45,000, and direct labor cost RM31,000. Prepare Cost of goods sold schedule for the company.

QUESTION 3

Using above information prepare following budget:

1. Production budget
2. Direct material Budget
3. Direct labor budget

QUESTION 4

Belton Sdn Bhd is considering one of the two mutually exclusive projects, 7-ELEVEN and SPEEDMART. The company’s discount rate is at 6%. The expected after tax cash flows for both projects are as follows:

As the company’s financial manager, you are required to:

• Calculate the payback back period for project 7-Eleven and
• Calculate the Net Present Value for project 7-Eleven and
• Calculate the Internal rate of return for p project 7-ELEVEN and Speedmart.
• Determine the best project that Belton Sdn Bhd should invest Justify your answer.