Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / guest
12% in west bengal
| Is This Answer Correct ? | 0 Yes | 1 No |
Post New Answer View All Answers
payment voucher for advance salary
what do you mean by Firm
How many types of business transactions are there in accounting?
As you know account executives need to be talented salespeople. Do you have experience making sales?
Tell me under the accrual basis of accounting, when revenues are reported in the accounting period?
What is a comprehensive income?
Tell me what do we mean by purchase return in accounting?
how to pass provision salary full and settlement(inclusive Bonus,Gratutity etc )please show me entry
What is the journal entry of building rent and TDs payment?
what role did you play in collections?
What is a cpa?
Can you tell me entry tax will be applicable on Spectacles purchase from u s a
What are the criteria for accounting job?
In tally when accounts with inventory ,when working in units of measurement under this after creating unit ,if we want to change the unit due to some mistake why does the cursor does not stop in the decimal field? And why the used units do not get deleted in the alter section?
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?
