AMONG LIFE INSURANCE, GENERAL INSURANCE & RISK MANAGEMENT, WHY DID YOU SPECIFICALLY CHOSE RISK MANAGEMENT/GENERAL INSURANCE/LIFE INSURANCE?
1671Case 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?
5932Post New IIRM Interview Questions
How do you extract post data in node.js?
Do you know what is zend engine?
Explain Data Science Vs Machine Learning?
What is joinpoint in spring aop?
What is mongodb good for?
Define collision in hashing?
What is the default font size in ms word 2007?
What is locale in java?
What is the latest version of objective-c?
hey, i am confused with ece n cse..both attract me the same..just that wich one has higher placements n pay pakages n which one has higher scope after doing mba??..reply urgently..
What is Retro Pay in Oracle Payroll? How many types of Retro Pays are available?
what is d check in dg 1500kva
Can we connect to postgresql using sql developer?
What is the main difference between html5 and sap ui5?
Can you explain supervised learning?