Company A Company B

Annual Profit £ 900,000.00 £ 600,000.00

Average Investment £ 20,000,000.00 £ 10,000,000.00
Account Rate of Return 4.50% 6.00%

Option A Option B
Location A Location B
£ million £ million
Cost of New Superstore 30 15
Residual Value 10 5
Depreciation Value Total 20 10
Term (years) 50 50
Depreciation / year 0.4 0.2
Annual Sales Revenue 10 6
Annual Cost of Sales -8.1 -4.8
Annual Staff Costs -0.5 -0.3
Other Annual Costs -0.1 -0.1

YTD

20 year bond 50 year bond

Yield to redemption 3.33 5.05
Cost of equity Capital 7.34% 8.38%

20-year bond 50-year bond

Face Value of each bond £100 £100
Nominal Interest Rate 8.00% 6.50%
Predicted market price of bond £150 £120

Further information: Scylace plc has total assets of £312 million, including £14 million in cash, with total liabilities of £98 millio
 Option A Option B
Location A Location B
£ million £ million
1,300,000.00 800,000.00 Profit/year before Depreciation
400,000.00 200,000.00 Depreciation / year
900,000.00 600,000.00 Annual Profit

8.38%

on in cash, with total liabilities of £98 million.

 Company A Company B
Annual Profit £ 1,000,000.00 £ 660,000.00
Average Investment £ 25,000,000.00 £ 14,000,000.00
Account Rate of Return 4.00% 4.71%

Option A Option B
Location A Location B
£ million £ million
Cost of New Superstore 40 25
Residual Value 10 3
Annual Sales Revenue 13 10
Annual Cost of Sales -9.1 -7
Annual Staff Costs -1.2 -1.1
Other Annual Costs -1.1 -0.8

20 year bond 50 year bond

Yield to redemption 3.33 5.05
Cost of equity Capital 7.34%

20-year bond 50-year bond

Face Value of each bond £100 £100
Nominal Interest Rate 8.00% 6.50%
Predicted market price of bond £150 £120

Further information: Scylace plc has total assets of £312 million, including £14 million in cash, with total liabilities of £98 millio
 Option A Option B
Location A Location B
£ million £ million
1,600,000.00 Profit/year before Depreciation 1,100,000.00
600,000.00 Depreciation / year 440,000.00
1,000,000.00 Annual Profit 660,000.00

on in cash, with total liabilities of £98 million.

 Year Ended September 30th.

2017 2018
£m £m
Sales Income 681 697
Cost of Sales -492 -500
Gross Profit 189 197
Distribution Costs -85 -87
Administration Expenses -79 -83
Operating Profit 25 27
Finance Income 0 0
Finance Costs -6 -5
Net Profit Before Tax 19 22
Taxation -3 -4
Net Profit After Tax 16 18
Dividends -6 -7
Retained Profit 10 11

As at September 30th.
2016 2017
£m £m
Non-Current Assets 203 209
Current Assets 19 22
Current Liabilities -37 -38
Non-Current Liabilities -82 -80
Shareholders’ Equity 103 113

Helibeb plc 2016 2017

Return on Shareholders Equity 14.81
Turnover of Capital Employed 3.60
Net Profit Margin 2.35
Operating margin 3.67
Book Gearing 44.32 41.45

Further information: Scylace plc has total assets of £312 million, including £14 million in cash, with total liabilities of £98 millio
 2018
£m
211
29
-40
-76
124

2018
15.19
3.55
2.58
3.87
38.00

with total liabilities of £98 million.