AMONG LIFE INSURANCE, GENERAL INSURANCE & RISK MANAGEMENT, WHY DID YOU SPECIFICALLY CHOSE RISK MANAGEMENT/GENERAL INSURANCE/LIFE INSURANCE?
1665Case Study: Deepak Hand tools Private Limited DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in Haryana. The company’s sales in the year ending on 31st March 2007 were Rs.1000 million (Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 14 percent. The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30million per annum. The plant can be sold for Rs.55 million at the end of its economic life. The company would need to raise debt to the extent of Rs.200 million. The company has the following options of borrowing Rs.200 million: a. The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annual installment of interest and repayment of principal. b. A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: 1. Should the company expand its capacity? Show the computation of NPV 2. What is the annual installment of bank loan? 3. Calculate the quarterly installments of the Financial Institution loan 4. Should the company borrow from the bank or from the financial institution?
5923Post New IIRM Interview Questions
What is the main function of multiplexed address/data bus?
I am in god softwwrae compnay as SAP QM consultant Domain with Pharma industry, I have got an oppurtunity for creating Computer system Validation Documents in Reputed pharma company . Can any one please help me out to prepare the CSV documents.
What is and why dojo toolkit ?
tell me about yourself answer asked for experienced person in sales side?
Explain the issues regarding classification and prediction?
create a flow diagram up to 2 levels for hospital management
What is function and its uses?
If oil and air can withstand a high MeV when used as an insulator in a transformer, what are the values of how high for each material?
What do you mean by a current transformer?
What is a .sh file in windows?
How do you create a table in pgadmin?
Suppose if you decided to delegate what type of instructions would you give your staff?
What is append in excel?
Hi Experts, Here is a scenario reg Dearness Allowance.....Can anybody tell me the configuration path and how to execute the report PC00_M40_DAC (report related to DA) A company is providing DA to its employees for every 3mnths....till 01/09/2008 it has given Rs 1500...and from 01/10/2008 it has to give Rs 1600. Hw can v config the system as per the scenario...and after running the report PC00_M40_DAC (is it DAC or DAP i m not sure) how it should be displayed? Can anybody please respond ASAP Thanks in advance
What is your favorite food tell me how it's being prepared?
