Assignment Net Present Value and Capital - 2389 Words

[pic] AMITY SCHOOL OF DISTANCE LEARNING Post Box No. 503, Sector-44 Noida – 201303 FINANCIAL MANAGEMENT Assignment A Marks 10 Answer all questions. 1. a. Should the titles of controller and treasurer be adopted under Indian context? Would you like to modify their functions in view of the company practice in India? Justify your opinion? b. A firm purchases a machinery for Rs. 8,00,000 by making a down payment of Rs.1,50,000 and remainder in equal instalments of Rs. 1,50,000 for six years. What is the rate of interest to the firm? 2. a.Explain the mechanism of calculating the present value of cash flows..What is annuity due? How can you calculate the present and future values of an annuity due?†¦show more content†¦One-fourth of sales are on cash basis. Cash balance expected to be Rs. 12,000. You are required to prepare a statement showing the working capital needed o finance a level of activity of 70,000 units of output. You may assume that production is carried on evenly throughout the year and wages and overheads accrue similarly. 2. a. Through quantitative analysis prove that PI is a better technique than NPV in Capital Budgeting. b..A company is considering the following investment projects: | |Cash Flows (Rs.) | |Projects | | | |Co |C1 |C2 |C3 | | | |Show MoreRelatedCapital Budgeting Process Should Be Utilized1432 Words   |  6 Pagesby some type of investment(s), in the form of acquisition, and or merger. In the world of business, capital budgeting is one of the most important steps that a company or organization can take. This process is called Capital budgeting. Capital budgeting is a process that attempts to determine the future. Before any large project begins, the capital budgeting process should be utilized. Without capital budgeting, your company could make a fatal mistake. A company or organization that is looking to investRead MoreCapital Budgeting Process Should Be Utilized1489 Words   |  6 Pagesby some type of investment(s), in the form of acquisition, and or merger. In the world of business, capital budgeting is one of the most important steps that a company or organization can take. This process is called Capital budgeting. Capital budgeting is a process that attempts to determine the future. Before any large project begins, the capital budgeting process should be utilized. Without capital budgeting, your company could make a fatal mistake. A company or organization that is looking to investRead MoreCaladonia Products Integrative Problem1382 Words   |  6 Pagesthe assistants understanding of the capital budgeting process (Keown, Martin, Perry, Scott, 2005). Financial Assistants Assignment The financial assistant received the important assignment by memorandum from the CEO. 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Part-II: Google’s acquisition of Groupon would have been win -win situation for both corporations Now I will discuss bothRead MoreCaledonia Products Integrative Problem1529 Words   |  7 Pagesgiven the assignment that involves both the calculation of the cash flows associated with a new investment and the evaluation of several mutually exclusive projects. The company is currently in the 34% tax bracket with a 15% discount rate because this project is considered a fad project it will only last five years then it will be terminated. This paper will focus on free cash flows, projection of cash flows during years 1-5, projects initial outlay, cash flow diagram, net present value, internalRead MoreNPV AND IRR1057 Words   |  5 Pagesï » ¿ASSIGNMENT TOPIC: â€Å"THE ADVANTAGES AND DISADVANTAGES OF USINFG NPV (NET PRESENT VALUE) AND IRR (INTERNAL RATE OF RETURN)† NPV (NET PRESENT VALUE) The difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project. NPV analysis is sensitive to the reliability of future cash inflows that an investment or project will yield. NPV compares the value of a dollar today to the valueRead MoreBudgeting And Investment Appraisal : Questions1432 Words   |  6 Pages, Workshop Assignment 3 Budgeting and Investment appraisal Student submitting their individual work ID # Other Team members if a group process was used. ID # Lecturer’s name: Paul Brewster Qualification: BBA – Top Up Unit number, title and code Accounting 2 Unit level QCF Assignment number : 3 Assignment title: Assignment 3: Budgeting and investment Appraisal Hand out date: 13/ 07/ 2015 Date for feedback Immediate /by... Presentation Summative Date for submission:Read MoreFin/370 Caledonia Products Essay examples786 Words   |  4 Pagesworking for the capital budget department at Caledonia Products. The organization has asked Team B to evaluate the potential risk involved in an upcoming transaction and identify several options in how to proceed. Because this is the team’s first assignments dealing with risk analyzes the team has been ask to further explain the details. The organization analysis will focus on free cash flows, projection of cash flows, projects initial outlay, cash flow diagram, net present value, internal rate ofRead MoreBu 3121305 Words   |  6 PagesAssignment 1: Bus 312 You must provide complete answers that describe and demonstrate how you arrived at your solution. Numeric solutions alone are unacceptable. In addition, copying and pasting suggested solutions is not sufficient effort to earn a mark for this or any other assignment. Hand in a â€Å"hard copy† of your assignment to the marker box. No e-mail submissions. No late assignments, no exceptions. 1. (From Final Exam Summer 2009) ABC Company Ltd., is considering a possible businessRead MoreSyllabus: Corporate Finance and Business Journal/newspaper Article1123 Words   |  5 Pagesare responsible for making significant investment and financing decisions. The course is designed to develop critical corporate finance skills including: financial statement analysis, time value of money, valuation of stocks and bonds, net present value, risk adjusted return, opportunity cost of capital, capital budgeting and planning, company valuation and Mamp;A. At the end of this course students will understand how to apply these concepts to financing decisions that will impact the valuation