cameroon gce A level 2024 business mathematics 2
cameroon gce A level 2024 business mathematics 2
In order to start a new branch, MARINA Pressing is contemplating between three (3) machines with the
following annual cash flows:
| Machine | A | B | C |
| Cost (FCFA) Annual Cash–flow |
25,000 (000 I‘CI’A ) |
‘ 20,000 (000 1–CFA ) |
23,000 (000 FCFA ) 3,800 |
| 4,200 | |||
| 8,100 |
8,400
6,900
3,000
4,000
7,000
9,000
8,000
7,000
7,200
7,500
7,100
6,800
123
V .
45
| Residual value (000 FCFA ) | 500 |
| (a) Calculate the Net Present value of each machine and comment. Discount rate 7 %. (b) Determine the Pay–Back period for each machine and comment. (c) If MARINA Pressing is more interested with the time within which the initial investment could be recovered, which of the above methods will be preferable for appreciating the projects? |
(8 marks) (7 marks) |
| ( 1 mark) |
Total = ( 16 marks)
.2. ...(a)- 9 (nine) annuities.are placed at an annual rate of 8 %. The first annuity amounted to 1 ,200,000 FCFA.
The annuity is increased by 500,000 FCFA every year. Calculate the present value of the annuities.(7 marks)
(b) An account manager in Menchum Bank wants to know the average due date of 10 end of period
annuities at a rate of 6 % p.a. following the granting of a loan to one of its customers.
| Determine the average due date. | (7 marks) Total = ( 14 marks) |
3. (a) FIRST Pic. went Bankrupt on the 21st of November 2010. The bankrupt owed a debt of 18,000,000 FCFA
including debts of 2,100,000 FCFA to a secured creditor who must be paid all of his money. The legal
charges for this transaction amounted to 530,000 FCFA. Given that the dividend rate is 25 %.
| Determine the value of the assets of the bankruptcy | (8 marks) |
| (b) A second hand RAV4 Jeep was bought at 4,500,000 FCFA. It has an economic life span of 5 years and a | |
| salvage value of 500,000 FCFA. Using the reducing balance method, Calculate: (i) The depreciation rate (ii) Book value of the RAV4 Jeep at the end of the third year. |
(4 marks) (2 marks) Total = ( 14 marks) |
| A sum of 400,000 FCFA is invested at a compound interest rate of 5 % p.a. At the end of the investment | 4. |
duration, the sum amounted to 651,557.85 FCFA.
Calculate;
(a) The duration of the investment (n)
(b) The interest of the year n–1
(c) The total interest produced at the end of the n– 1 years
(d) The future value of this sum at the end of n–1 years
(4 marks)
(4 marks)
(3 marks)
(3 marks)
Total = (14 marks)
5. Consider a debenture loan with the following characteristics:
– Nominal value 12,000 FCFA
– Nominal interest rate 10.25 %
– Reimbursement price 12,300 FCFA
– Amount of first amortisation 28,757,400 FCFA
– The interest coupon of the last year is 8,205,330 FCFA
– The annuities are constant
Calculate:
(a) The duration of the loan
(b) The theoretical constant annuity
(c) The amount of the loan
(d) What is the difference between an ordinary loan and a debenture loan?
(6 marks)
(4 marks)
(3 marks)
( 1 mark)
Total = (14 marks)
