1) A-Calculate the net present value (NPV) of the potential capital expenditure project.
B-Advise May Engineering PLC whether they should proceed with the project.
2)Critically evaluate the usefulness of each of the following ratios to a multinational company reviewing their financial performance.
- Current ratio
- Capital gearing ratio
- Return on capital employed (ROCE)
- Rate of inventory turnover
- Trade receivables (debtors) collection period
- Trade payables (creditors) payment period