Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question :
(a) Lucky Corporation is considering an investment in one of the two mutually exclusive proposals: Project A which involves an initial outlay of Rs 170,000 and Project B which has an outlay of Rs 150,000. The Certainty Equivalent Approach is employed in computing risky investments. The current yield on treasury bills is 0.05 and the company uses this as the riskless rate. The evaluated values of net cash flows with their respective certainty equivalents are:
Required:
i. Which Project could be acceptable to the company?ii. Justify which Project is riskier? iii. If the company was to use the risk adjusted discount rate method, which Project could be analysed with higher rate?
(b) If the required rate is 10 percent, evaluate the present value of the cash flow streams detailed below:
I. Rs 100 at the end of year 1. II. Rs 100 at the end of year 4. III. Rs 100 at the end of year 3 and year 5. IV. Rs 100 for the next 10 years ( for years 1 through 10).
(c) Miss. Kiran has in her possession 300 preference shares of Cintex company Ltd, which currently sells for Rs 400 per share and pays an annual dividend of Rs 34 per share.
I. Determine Miss Kiran's expected return. II. If Miss Kiran needs an 8 per cent return, given the price, should she sell or buy more stock.
Your construction company is evaluating the proposed acquisition of a new earthmover. A consulting company you hired developed the following analysis last year at a cost to you of
We have seen computation of present value using single discount rate. But the right way to value a cash flow of a bond is to use multiple discount rates, i.e valuing th
Question 1 What is Depreciation? Question 2 What are the elements of an accounting system? Question 3 How do you prepare Flexible Budget? Question 4 Briefly explain
Maturity Profile Even though there is no ideal theory/concept of the maturity of the instruments, some important issues that should be considered while balancing the long-term
It is a method of budgeting in which the actions that incur costs in every functional area of a company are recorded and their relationships are defined and evaluated. Activities a
BAGS, Inc. is considering an investment in a new project. The required investment is $1,000,000. After-tax net cash flows are expected to be $50,000 the first year and are expected
The total return in case of mortgage-backed and asset-backed securities depend on the projected principal repayment and the interest earned on r
type of assets for ppt from t.y.bom com student in commerce department in financial management
Question : (a) A project must have a useful purpose. Therefore, as a project is evaluated, the team should determine the requirements of the local community and industry. These
MBS are the most complicated securities that are sensitive to interest rates. The factors that affect the price of MBS are varied and most of th
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd