Interested to Buy Any Domain ? << Click Here >> for more details...
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 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.30 million per annum. The plant can be sold for
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 annum 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 installment of the financial
institution loan. (4) should the company borrow from the
bank of from the financial institution?
- 0 Answers
- 3075 Views
- I also Faced
- E-Mail Answers
No Answer is Posted For this Question
Be the First to Post Answer
Mention what are things will not be included in a bank reconciliation statement?
1.an Asset costs $ 10,000 and has a net book value of $ 100, and an estimated life of ten (10) years, what would be the annual depreciation using the straight line method?
What is a ledger in regards to accounting?
Tell us what is icai?
In Service tax Return ST-3 What is meaning of first Row (i) Service tax payable (a) Gross amount received in money (I) Against service provided Pls explain in detail
Company A has purchased goods worth Rs. 25000 from company B and made the cash payment of Rs 5000 and remaining will be payable with in 30 days. Assume that there is a late payment charge @ 2% on remaining amount as the invoice was received after due date from company B. Pass the journal entry in the books of company A for all the above transactions.
how to select afile in window vista
TDS mening
I'am accountant working in a trading concern. I wish to become an accountant in a manufacturing/construction company.are there any books available in the market from which I can get an Idea as to how accounts are prepared and maintained for a manufacturing/construction company.
what is indian currary (but not rupee) like bound etc...
By saying, perpetual or periodic inventory system; what do we mean?
golden rules of accounting
Audit 
