What is the length of the operating cycle

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Questions -

Q1) Explain wealth maximization?

Q2) A) If you deposit Rs 10000 today in a bank that offers 8% interest, how many years will the amount take to double?

B) What is the future value of a regular annuity of Re 1.00 earning a rate of 12% interest p.a. for 5 years?

Q3) Relation between financial leverage and the capital structure?

Q4) a) A project requires an initial outlay of Rs. 1,00,000. It is expected to generate the cash inflows shown in table.

Year

Cash inflows

1

50,000

2

50,000

3

30,000

4

40,000

b) What is the IRR of the project?

c) Compute IRR.

Q5) Below Table gives the complete details of sales and costs of the goods produced by XYZ ltd for the year 31.03.12.

sales

80,000

Inventory


Cost of goods

56,000

31.3.07

9,000



31.3.08

12,000



Accounts Receivables




31.3.07

12,000



31.3.08

16,000



Accounts payable




31.03.07

7,000



31.03.08

10,000






Q6) What is the length of the operating cycle? What is the cash cycle? Assume 365 days in a year?

Q7) Walter's model assumptions?

Reference no: EM132433435

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