Question 46
The following data are available for an investment centre for the latest period. Where appropriate the data have been adjusted to reflect economic values.
What cost of capital has been used to calculate the EVA?

Give your answer to the nearest percentage.
What cost of capital has been used to calculate the EVA?

Give your answer to the nearest percentage.
Question 47
Company TTM has the opportunity to invest $60,000 in a project. The project is anticipated to produce annual returns of $12,500 each year for 8 years. The cost of capital is 12%.
What is the net present value of the project? Give your answer to the nearest whole number.
What is the net present value of the project? Give your answer to the nearest whole number.
Question 48
A long established organization has recognised the need to make urgent changes to the way it operates in order to remain competitive. The organization wishes to dramatically improve its performance through a fundamental rethinking and radical redesign of its existing activities.
Which of the following techniques should be used to achieve this?
Which of the following techniques should be used to achieve this?
Question 49
When making an investment decision, which THREE of the following are reasons why receiving $1 today is preferable to receiving $1 in the future?
Question 50
Beyond Budgeting is essentially an approach that places modern management practices within a cultural framework. Analyze the following statements:
1. The organization structure should have clear principles and boundaries.
2. Managers should be given a high degree of freedom to make decisions.
3. Frontline managers should be made responsible for relationships with customers.
4. Information system should be transparent and ethical.
Which of the above statements relate to Beyond Budgeting?
1. The organization structure should have clear principles and boundaries.
2. Managers should be given a high degree of freedom to make decisions.
3. Frontline managers should be made responsible for relationships with customers.
4. Information system should be transparent and ethical.
Which of the above statements relate to Beyond Budgeting?