Ask Question, Ask an Expert


Ask Financial Management Expert

Attempt all the problems.


problem1) Describe the concept of time value of money. How do we compute the future value and present value of money in case of an annuity? How does the value of money change with change in rate of interest and time duration? Describe with exs.

problem2) Describe five various types of capital Budgeting Appraisal methods used.

problem3) In relation with financial markets what are the various types of investment risks? How do you measure them?

problem4) What are the different costs considered in the cost of capital?  What approaches are     used to compute the cost of equity?


Case Study

A company is considering the following investment projects. All projects require an investment of Rs. 10,000:

Projects                                                                       Cash Flow
                                                                     Year 1          Year 2         Year 3  
A                                                                    10000            -                  -
B                                                                      7500           7500             -
C                                                                      2000           4000          12000
D                                                                    10000           3000            3000

Case problems:

problem1) Rank the project according to the following:

(i) Payback period

(ii) Average rate of return

(iii) Internal rate of Return

(iv) Net Present Value; assuming discount rates of 10 % and 30%.

problem2) Assuming that projects are independent which one will you accept?

problem3) In case of the conflict in ranking according to NPV and IRR rule which project you choose and why? Describe with ex.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M93227

Have any Question? 

Related Questions in Financial Management

Daily foreign exchange rates spot rates can be obtained

Daily foreign exchange rates (spot rates) can be obtained from the Federal Reserve Bank in Chicago. The data are the noon buying rates in New York City certified by the Federal Reserve Bank of New York. Consider the exch ...

Sunnybrook farms is a local grocery store that is currently

Sunnybrook Farms is a local grocery store that is currently open only Monday through Saturday. Sunnybrook is considering opening on Sundays. The annual incremental costs of Sunday openings are estimated at $24,960. Sunny ...

Consider the monthly log returns of crsp equal-weighted

Consider the monthly log returns of CRSP equal-weighted index from January 1962 to December 1999 for 456 observations. You may obtain the data from CRSP directly or from the file m-ew6299.txt on the Web. (a) Build an AR ...

The country of pugelovia has an endowment total supply of

The country of Pugelovia has an endowment (total supply) of 20 units of labor and 3 units of land, whereas the rest of the world has 80 units of labor and 7 units of land. Is Pugelovia labor-abundant? Is Pugelovia land-a ...

Task 1capm modelrequired rate of return risk free market

TASK 1 CAPM Model= Required rate of return= risk free+ (market return- t=risk free rate) * Beta From the following data ...

Jason has the option to receive 100000 today or receive

Jason has the option to receive $100,000 today or receive equal periodic payments at the end of each year for the next 9 years from a trust. His opportunity cost on investments is 12% compounded annually. What annual pay ...

A a negative-feedback amplifier has a closed-loop gain of

(a) A negative-feedback amplifier has a closed-loop gain of Af = 100 and an open-loop gain of A = 5 × 104. Determine the feedback transfer function β. (b) If β = 0.012 and Af = 80, determine the open-loop gain A.

What are the primary and secondary credit rates when do

What are the primary and secondary credit rates? When do they change? How often does the Fed change the required reserve ratio? How often does the Fed engage in open market operations?

Principals of financial markets group assignmentin groups

Principals of Financial Markets Group Assignment In groups of 3-4, students should choose firstly an industry and secondly two (2) ASX listed companies in this same industry upon which to undertake a fundamental analysis ...

Recall the transactions that are triggered when you pay

Recall the transactions that are triggered when you pay your rent (see Given Figure). Now suppose your check bounces because you don't have enough funds in your account. How does this change the series of transactions?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate