Calculation of net cash flow after tax 8 2.2 Selection of relevant net cash flow after tax 8 2.2 Short report explaining calculation of net cash flow after tax 8 2.2 Calculation of project 14 1.1 Loan

   

Added on  2020-01-07

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Managerial Financing 1
Calculation of net cash flow after tax 8 2.2 Selection of relevant net cash flow after tax 8 2.2 Short report explaining calculation of net cash flow after tax 8 2.2 Calculation of project 14 1.1 Loan_1
Table of ContentsINTRODUCTION...............................................................................................................................4TASK 1 Calculation of project 1.........................................................................................................41.1 Loan repayment Schedule ......................................................................................................4TASK 2................................................................................................................................................82.1 Net cash flow after Tax.............................................................................................................82.2 Calculation of NPV and decision..............................................................................................92.4 Short report explaining calculation of relevant net cash flows after tax, justifying selection ofcash flows......................................................................................................................................10SUMMERY.......................................................................................................................................10References..........................................................................................................................................112
Calculation of net cash flow after tax 8 2.2 Selection of relevant net cash flow after tax 8 2.2 Short report explaining calculation of net cash flow after tax 8 2.2 Calculation of project 14 1.1 Loan_2
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Calculation of net cash flow after tax 8 2.2 Selection of relevant net cash flow after tax 8 2.2 Short report explaining calculation of net cash flow after tax 8 2.2 Calculation of project 14 1.1 Loan_3
INTRODUCTIONManagerial financing is a branch of financing that is in itself related with various financialtechniques. It focus on calculation and assessment rather then techniques(Osborne, M.J., 2010). Soin this project two cases have been concluded in first project a report on Polycorp is considered asan investment of $3.25 million and needed a loan of $2 million. So in this report and as per givendata its repayment schedule is included. Furthermore NPV, IRR, AE or equivalent for the project iscalculated. Payback period, method and discounted payback, ARR and Profitability Index, and asper results project accepted or not is analysed and treatment of salvage value and loan repaymenthas been included.In project two new machinery a proposal is made to purchase new machinery. As per givendata a research and calculation is made to calculate net cash flow after tax. NPV of project isanalysed and also sensitivity analysis is made by changing its cost of capital rate from 14.65% to15.5% and analysis of change in rate have been included likes its effect of change compared toactual output. And lastly all calculations are explained in brief whic help mangers of Polycorp Ltd.to accept project or not. TASK 1CALCULATION OF PROJECT 11.1 Loan repayment ScheduleAmortisation schedule is a table which is detailed how to pay loan specially mortgage or ininstalment payment system. It refers to process which is repayment of debts along with interest. Soin this chart a portion of payment is settled toward both remaining interest and capital amount to bepaid. Over a period of time as instalment deposits interest on due amount decreases and capitalbalances.PmtNo.PaymentDateBeginningBalanceScheduledPaymentExtraPaymentTotalPaymentPrincipalInterestEndingBalanceCumulativeInterest102/05/2018$20,00,000.00 478026.4139560060478026.41353026.411250001646973.58604399125000202/05/201916,46,973.594,78,026.41- 4,78,026.413,75,090.561,02,935.8512,71,883.022,27,935.85302/05/202012,71,883.024,78,026.41- 4,78,026.413,98,533.7379,492.698,73,349.303,07,428.544
Calculation of net cash flow after tax 8 2.2 Selection of relevant net cash flow after tax 8 2.2 Short report explaining calculation of net cash flow after tax 8 2.2 Calculation of project 14 1.1 Loan_4

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