what is the difference between accounts and finance ?

5 Answers   ABC, CA,

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Case 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?

0 Answers   IIRM,

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what is the capital expenditure

3 Answers   Micro Labs,

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What is the Defference between Bank balance and insurance Balance.

1 Answers  

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why should we treat closing stock credit side in trading account , and why the reason the closing stock should not appear in the trial balance ?

3 Answers   Capital IQ, XL Dynamics,

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How to Finalized Accounts? Please Guide.

2 Answers  

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What will be the journal entry for good lost by fire. How many entries will be passed in the books of account for the same.

29 Answers   IBM, MTM,

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what is the difference in direct expenses and indirect expenses?

9 Answers  

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i wana give an interview as sr. excise officer what r the question will asked by interviewer ??? Please suggest me so I can clear inteview.thank u

0 Answers  

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We are dealing in a security (MANPOWER PROVIDER)WE HAVE A PROBLEM AS PER OUR CLIENT'S REQUIREMENT pf and esic challan seprately require by client's can we generate seprate challan Please advice as early as possible.

1 Answers  

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What is Debit Note & Credit Note?

3 Answers   EDS,

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what is different between accouts receivable and billing?

1 Answers  

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