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    Exercise 3 4

    Uploaded by

    ALFRED OCHIENG
    Management maths

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Exercise 3 4

    Uploaded by

    ALFRED OCHIENG
    10 views4 pages
    Management maths

    Original Title

    EXERCISE 3 4

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Management maths

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    10 views4 pages

    Exercise 3 4

    Uploaded by

    ALFRED OCHIENG
    Management maths

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 4

    Ihe corrpany hou dicpoce tho tbrry yea

    Exevciçe 3

    -2 friendr Simiyu Ohene own a piece f land

    and a pick up repecbhvely

    Current value is 2 million -Land,


    4.8 million Pick -up.

    The land apprecater at vate of 44 of cuYront value

    and the pickup depreciabes at rabe of 7 of current value

    The Auo frie nde have agreed to erchange their acrehr

    ah a point where no add thional oaument wnl be mde

    (Same value) to oither f bhe m. hetermine the no. of

    atber which the 2 friends wil exchange heir


    yeavs
    respecive agrets

    Land
    pick-up.

    APP 3 bEP
    Curent value land 2,00,o00 Y°L)
    (Yo) pick-up 4,8D0 000 4O
    Appreciabhon fornula

    bepreciabn for mala Vo (i-)


    Vo= Prineiple /originad value. of asset
    Y=rabe (uçualy a b)

    LANE(T) PlCkue)
    2000,0 0o (1+

    4,860,obD (1-o.0)
    we equabe the a nides because we have been

    told thak after land appre ciabes 3 piek -up deprecktj


    the value wil be equal hey will be exchanggd

    thout additonal gay mant on ether side.


    2,000,0o0 (1+.ow) =4300,0bo (1-o.03

    Cottet
    Smphfy innide brackete

    2,00o ooo (1.09)=480o,boD (0.q:)

    Siide both ides by 2, million, bo renan

    wth exponenhal on the lefe

    2. 4
    -4204,000- (o.92)

    binde both des by (0.43)


    t
    (.o4) a.4

    (0-93)

    Nohice Hhab he numeratwr denominalbr on Hhe

    left nde, have bhe came po wer. (b can thus be wnte

    1.04 2.4

    Ac NoTE

    To undo muttiplicabion We mucb


    divid

    lo undo
    Square on a number, we
    muct find Square roob

    bito un do n xpenera we fnd tbs


    inverse (which is a loqaribm).
    Power b, becomes a
    mulbple)
    Inverce on the calculotor ic denotec bu n

    :04 o.43) In (a4)

    >E(o.12) 0.8755

    bivide both cidec by 0-l|a b fnd t


    Ot12 0.8755 -7.82 uears

    Ihe valueg will be equal after


    Eernptett Exercise 4

    XY2 2022 2023

    Nanable)

    eost 180,330o o0

    daba har been obtain ed from the bosks


    The follpuwing
    st Uwezo lbd

    Obtain fixed cost


    profit realized if Vayiable ogt incured ic Iolh
    (ib)

    (i)BEP in value.

    Prohtlobal Revenue (hxed cost 4 Variabla

    Reavranqing the formula to nake revenue

    thebjecb:
    Revenue fiyod cod + Variable ot t prbft

    R
    +800,Doo 330,000

    + 500, o00 180o0D

    Group ike ferms.

    Sutbract the 2 egns to eliminate a.

    Note thab we hormalu ubhra o the later year

    minus the earlierCie.2028a022.b see how

    much groth act reven ue has arouon/changod

    bme.
    t|,130,00o

    -0+ 450, 000


    This implies hab 20a3 Revenue war 450,Do

    morehan that of 20a2, |f we add 450,00b o


    the Pevenue funchon Gf 2022 t w1thus be
    equal to revenue of 20a3. funchon,

    lat 680,DDD+)450900 at l130 9

    Dpening bra ckets:

    L,130,bDD ta = (
    LA30,0o0 1, 130,ooD

    No f suriable cocts were incured.

    fikod

    0)) Pro Fit reelizcl i vanable coct incuwed ic,000,u

    Ob
    = Rev (a
    onthu nt

    t b)
    prufit

    profit. 2R(,00b,ov)
    Ascuming Hhat Ric aun gtanb (Rate of revenue

    change is consant !We know Ras130,oe

    Profik= Revenae
    23.
    (+ Rate f Rev, chanael

    680,0bo

    +(0.66xIob,

    -1130,0o01 G6
    FL,13o,000 (.66 8

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