Film animation ltd wishes to expand and has pound800000 to


Practice questions:

Film Animation Ltd wishes to expand and has £800,000 to invest. The details of two potential projects are as follows:

  Project A
 Project B
  £ £

Sales

318,500

358,000

Cost of sales including expenses

240,500

264,400

Average capital employed

650,000

780,000

Which project should the management choose, and why?

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Financial Accounting: Film animation ltd wishes to expand and has pound800000 to
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