Reference no: EM132596621
Assume that you are hired as a financial analyst for the DFML Company. The director of capital budgeting has asked you to analyze two proposed capital investments, Projects A1 and B2. Each project has a cost of Rs.10,000, and the cost of capital for each is 12%. The projects' expected net cash flows are as follows (10)
Year Project A1 (Rs.) Project B2(Rs.)
0 (10,000,000) (10,000,000)
1 6,500,000 3,500,000
2 3,000,000 3,500,000
3 3,000,000 3,500,000
4 1,000,000 3,500,000
1: Calculate each project's
a. Payback period,
b. Net present value (NPV),
c. Internal rate of return (IRR),
d. Profitability index (PI).
2: Which project or projects should be accepted if they are independent?
3: Which project should be accepted if they are mutually exclusive?
|
Compounded monthly for both of savings
: Mr Ali has been saving RM650 every month in ABC Bank for the past 6 years. On the other hand, Ms Siti has been saving RM500 every month
|
|
Which supplier should xz bearings go with assuming
: Total cost and EOQ , which supplier should XZ Bearings go with assuming that the quality of metal bars are same from both Supplier A and B.
|
|
Which components of inventory holding costs are applicable
: Which components of inventory holding costs are applicable to private sector holding cost calculations, but not government holding cost calculations?
|
|
What is the par value of share after the share split
: Direct labor peso cost, and 40% of the overhead is fixed cost. A decision to manufacture component X will result in a gain or (loss) for each component of?
|
|
Projects expected net cash flows
: Assume that you are hired as a financial analyst for the DFML Company. The director of capital budgeting has asked you
|
|
Evaluate any qualitative factor
: Prepare a quantitative analysis, and evaluate any qualitative factors that will be relevant to the decision. Provide a recommendation for management.
|
|
Construction of new store
: Imtiaz super stores, a leading name in retailer industry, currently operates ten retail outlets in Sindh and Punjab.
|
|
Determine the length of the credit period
: Fragrances, Ltd., sells 7,500 units of its perfume collection each year at a price per unit of Rs.955. All sales are on credit with terms of 2/10
|
|
Calculate the costs of using box trucks
: Calculate the costs of using box trucks and the costs of using vans. Compare the results. Should the transportation manager recommend to the SCM leader
|