Interested to Buy Any Domain ? << Click Here >> for more details...
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?
6601Post New IIRM Accounting General Interview Questions
- IIRM Banking Finance Interview Questions (9) IIRM Accounting General Interview Questions (1)
What is @controller annotation in spring mvc?
how will you cut an equilateral triangle into 4 equal equilateral triangles?
What are session methods in hibernate?
State the differences between mongodb and mysql.
What is mongodb atlas?
What are the various types of input forms that can be created for a workflow?
What is apache web server and how it works?
What is flexfield? And types of flexfields?
What is a 1 page website?
Explain the wordcount implementation via hadoop framework ?
how would you create multiple observations from a single observation? : Sas programming
Do you need php for wordpress?
Do you think it is possible to rehabilitate?
what happens when you launch instances in amazon vpc?
What is jdbc template in spring?
