N (# of 10
The company has decided to introduce a new meal through purchases from abroad. It has
to look into the cost of capital and profitability to be employed and realized respectively.
If Rf= .05 and beta= 0.
WORKINGS FOR QUESTION (iii, iv, v, vii)
(sales on credit/ total sales) * 365 days
accounts receivable ratio = 0.7 * total sales/ total sales) * 365
ARR = (0.7 * 532,541/ 532,541) * 365 = 255.5
ARR= (0.7 * 604.3/ 604.3) *365 days = 255.