AMONG LIFE INSURANCE, GENERAL INSURANCE & RISK MANAGEMENT, WHY DID YOU SPECIFICALLY CHOSE RISK MANAGEMENT/GENERAL INSURANCE/LIFE INSURANCE?
2077Case 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?
6475Post New IIRM Interview Questions
Explain impersonation?
what does the ovrdbf command do?
When a client request is sent to the servlet container, how does the container choose which servlet to invoke?
How do you access private methods in python?
Is bootstrap frontend or backend?
What is the shortest method to open a text file and display its content?
what is the difference between cardinality and Nullability?
How can you implement encapsulation in asp.net?
Can you tell few benefits of web services?
How do you wrap text in word 2010?
what types of active directory objects can be contained in an organizational unit? : Windows server 2008
Which is new element in html5?
what is the function that is used to identify how many characters are there in a string?
What are the different lift augmentation devices present?
Tell me what is the use of "ksort" in php?