Managerial Finance Assignment 2022

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MANAGERIAL FINANCE

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Table of Contents
P 1....................................................................................................................................................3
P2.....................................................................................................................................................4
References......................................................................................................................................10

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P 1
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Car expense -20000 -20000 -30000 -40000 -50000 -60000
Book Value of car at the
Year-end
60000 40000 20000 0 0 0
Depreciation 20000 20000 20000 20000 0 0
salvage value 0 0 30000 25000 20000 10000
Gain/ loss -60000 -40000 10000 25000 20000 10000
Replacement at year
3
Particulars Year3 Year 4 Year 5 Year 6 Total
Car expense -30000
Saving of car expense 0 40000 50000 60000
Depreciation -20000 -20000
Opportunity cost 0 -25000 -20000 -10000
Capital Gain 10000
Total Profit or loss -40000 -5000 30000 50000
Tax @30% -12000 -1500 9000 15000
Profit after tax -28000 -3500 21000 35000
Depreciation 20000 20000
Cash flow -8000 16500 21000 35000
PVF@10% 0.751315 0.683013 0.620921 0.564474
PV -6010.52 11269.72 13039.35 19756.59 38055.14
Replacement at year
4
Particulars Year 4 Year 5 Year 6 Total
Car expense -40000
Saving of car expense 0 50000 60000
Depreciation -20000
Opportunity cost -20000 -10000
Capital Gain 25000
Total Profit or loss -35000 30000 50000
Tax @30% -10500 9000 15000
Profit after tax -24500 21000 35000
Depreciation 20000
Cash flow -4500 21000 35000
PVF@10% 0.683013 0.620921 0.564474