Dear students, get fully solved assignments by professionals
Do send your query at :
or call us at : 08263069601
(Plagiarism proofed
assignments available with 100% surety and refund)
Corporate Finance
September
2023 Examination
1.
Aradhana
Limited has the following 2 investment options:
i) The project requires 1 machine of Rs. 2 lacs with
a life of 6 years. There is NIL salvage value expected at the end of the life.
The annual income in each year is Rs. 100000, Rs. 200000, Rs. 250000, Rs.
250000, Rs. 200000, Rs. 120000.
ii) Cost of the project is Rs. 1.5 lacs with a life
of 5 years. Salvage value of the machinery used in the project is Rs. 10000.
The annual income in each year is Rs. 80000, Rs. 80000, Rs. 100000, Rs. 250000,
Rs. 100000.
Which option seems more profitable and why? (10 Marks)
Ans:
Introduction:
Aradhana Limited
is considering funding options to determine which option is more profitable. In
option I, the assignment requires a system costing Rs. 2 lakhs with a life of 6
years and no salvage value. Each year's once-a-year income is Rs. 100,000, Rs. 200,000,
Rs. 250,000, Rs. 250,000, Rs. 200,000, and Rs. 120,000. In alternative ii, the
project expenses of Rs. 1.5 lakhs with a life of 5 years, and the equipment
used has a salvage value of Rs. 10,000. The annual income for each year is Rs.
80,000, Rs. 80,000, Rs. 100,000, Rs. 250,000, and Rs. 100,000. In this
evaluation, we will evaluate
Dear students, get fully solved assignments by professionals
Do send your query at :
or call us at : 08263069601
(Plagiarism proofed
assignments available with 100% surety and refund)
2.
With
the following information, evaluate the projects using payback, discounted
payback and the PI method for the following projects. Discounting factor is 10%
Which project shall be chosen?
Under what situation would you prefer the PI method
over the other 2 methods? (10 Marks)
|
Year |
A |
B |
|
0 |
-4,50,000 |
-550000 |
|
1 |
1,00,000 |
135000 |
|
2 |
2,20,000 |
180000 |
|
3 |
2,45,000 |
235000 |
|
4 |
1,80,000 |
200000 |
|
5 |
1,20,000 |
100000 |
Ans:
We
can calculate the relevant values based on the supplied information to assess
the projects using the payback period, discounted payback period, and the
profitability index (PI) method. The discounting factor given is 10%. Let us
calculate the values for each way:
Project
A:
Year |
Cash Flow
0 |
-450,000
1 | 100,000
3.
a. Juhi
has taken a car loan of Rs. 5, 00,000 for a period of 5 year @ 10%. Calculate
the EMIs to be paid by her and draw up her EMI Schedule. (5 Marks) –
Ans:
Introduction:
Car
loans have become a popular financing alternative for individuals who aspire to
own a car without paying the total price upfront. By taking an automobile loan,
borrowers can spread out the bills over a specified duration, making it more
excellent viable and lower priced. In this text, we will explore the concept of
car loans, mainly focusing on Juhi, who has obtained a car loan of
b.
XYZ
Ltd. manufactures plastic toys. The fixed operating cost is Rs. 1,00,000/-. The
toys sell at a price of Rs. 60 each. The variable cost for production of the
toys is Rs. 30 each. It has an outstanding loan of Rs. 5, 00,000/- @ 8% p.a.
Calculate the DTL at 6000 units of production. Also
mention the inference/implication drawn.
(5 Marks)
Ans:
Introduction:
XYZ
Ltd. is an organization that focuses on manufacturing plastic toys. To analyze
the employer's financial performance, we need to consider various factors,
including ongoing operating costs, variable costs, selling prices, outstanding
loans, and product ranges. By examining those factors, we can calculate the
Debt to Equity Ratio (DTL) at a specific
No comments:
Post a Comment
Note: only a member of this blog may post a comment.