May Engineering PLC Accounting Assignment 1

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

 Dividend yield