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Financial Management

   

Added on  2022-12-28

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Financial management
Financial Management_1

2
Table of Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................4
Question 3........................................................................................................................................4
Question 4........................................................................................................................................5
Question 5........................................................................................................................................6
Financial Management_2

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Question 1
Calculation of initial investment
Particulars Amount
Price of still 600000
transportation cost 60000
Installation cost 40000
Working capital 30000
Initial outlay 730000
Particu
lars
1 2 3 4 5 6 7 8 9 10 Tot
al
Increas
e in
revenue
120000 12000
0
1200
00
1200
00
12000
0
1200
00
1200
00
1200
00
1200
00
1200
00
Increas
e in
cost
20000 20000 2000
0
2000
0
20000 2000
0
2000
0
2000
0
2000
0
2000
0
Depreci
ation
118000 11800
0
1180
00
1180
00
11800
0
Net
profit
-18000 -
18000
-
1800
0
-
1800
0
-
18000
1000
00
1000
00
1000
00
1000
00
1000
00
Tax @
30%
-5400 -5400 -5400 -
5400
-5400 3000
0
3000
0
3000
0
3000
0
3000
0
Net
profit
after tax
-12600 -
12600
-
1260
0
-
1260
0
-
12600
7000
0
7000
0
7000
0
7000
0
7000
0
Depreci
ation
118000 11800
0
1180
00
1180
00
11800
0
Salvage
value of
asset
1000
0
Workin
g
capital
recover
y
3000
0
Cash
flows
105400 10540
0
1054
00
1054
00
10540
0
7000
0
7000
0
7000
0
7000
0
1100
00
PVF @
10%
0.909 0.826 0.751 0.68
3
0.621 0.56
4
0.51
3
0.46
7
0.42
4
0.38
6
PV of 95818.1 87107 7918 7198 65445 3951 3592 3265 2968 4240 579
Financial Management_3

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