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CF Assignment

The documents contain assignments on corporate finance topics including calculating future and present values, rates of return, loan amortization schedules, and sinking fund calculations. Questions involve determining investment amounts needed to achieve future values, time periods for interest to reach target amounts, annual loan payments, and investment amounts required to pay off debts through sinking funds. Formulas for present value, future value, and compound interest are applied.

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P.Umasankar Subudhi
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38 views

CF Assignment

The documents contain assignments on corporate finance topics including calculating future and present values, rates of return, loan amortization schedules, and sinking fund calculations. Questions involve determining investment amounts needed to achieve future values, time periods for interest to reach target amounts, annual loan payments, and investment amounts required to pay off debts through sinking funds. Formulas for present value, future value, and compound interest are applied.

Uploaded by

P.Umasankar Subudhi
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Assignment 1

Sub: Corporate Finance


Section B
Date of submission: 14/02/19

1. You need Rs10,000 for your tuition expenses in 5.8 years how much should you
deposit today in a saving account that pays 3% per year?
2. You can buy a security now for Rs1000 and it will pay you Rs.1,191 three years from
now. What annual rate of return are you earning?
3. How much will a deposit of Rs500 at the end of every year for 3 years in an investment
fund earning 6% become?
4. Find the future value of Rs100 at 5% interest compounded quarterly for 3 years.
5. Which one will you choose:
a- 11% annual compounded rate of return on Fixed Deposit
b- 10% monthly compounded rate of return on Fixed Deposit

6. You borrow Rs10,000 today and will repay the loan in equal installments at
the end of the next 4 years. How much is your annual payment if the interest rate is
9%?

7. PQR Industries has issued debentures of Rs.50 lakhs to be repaid after 5 years. How
much should the company invest in a sinking fund earning 10% so as to pay off the
debentures?

8. A project whose life is 3 years is expected to generate Rs 3000, Rs 2,000 and Rs 1,000
at the end of each year. If time value of money is 8% what is the worth of series of
cashflows today?
Assignment 2
Sub: Corporate Finance
Section B
Date of submission: 14/02/19

1. One year from now, you agree to receive Rs1000 for your laptop that you sold
today. How much that Rs.1000 is worth today if you use 6.5% interest rate?
2. Your friend deposits Rs.100,000 into an account paying 8% per year. She wants to
know how long it will take before the interest makes her a millionaire i.e
10,00,000?
3. How much will a deposit of Rs1000 in the beginning of every year for 3 years in an
investment fund earning 6% become?
4. Find the future value of Rs1000 at 6% interest compounded half yearly for 4 years.
5. Which one will you choose:
a- 8% annual compounded rate of return on Fixed Deposit
b- 9% quarterly compounded rate of return on Fixed Deposit

6. Ramanuj has taken a 20 months car loan of Rs.6,00,000. The rate of interest is 12%
p.a. what will be the amount of monthly loan amortization?
7. ABCL Company has issued debentures of Rs 50 lakhs to be repaid after 7 years.
How much should the company invest in a sinking fund earning 12% so as to pay
off the debentures?
8. A project whose life is 5 years is expected to generate Rs 5000, Rs 4,000 and Rs
3,000, Rs 2,000 and Rs 1,000 at the end of each year. If time value of money is 6%
what is the worth of series of cashflows today?
Assignment 3
Sub: Corporate Finance
Section B
Date of submission: 14/02/19

1. Jack needed a Rs1191 after 3.4 years to pay off some debt. How much should jack
put in a saving account that earns 6% today?
2. Arun deposits Rs200,000 into an account paying 7% per year. She wants to know
how long it will take for the amount to become Rs 8,00,000?
3. How much will a deposit of Rs100 in the beginning of every year for 4 years in an
investment fund earning 6% become?
4. Find the future value of Rs10000 at 4% interest compounded half yearly for 5 years.
5. Which one will you choose:
a- 13% annual compounded rate of return on Fixed Deposit
b- 12% half yearly compounded rate of return on Fixed Deposit
6. Yash bought a TV costing Rs 13,000 by paying Rs 3,000 as down payment and
agreeing to pay the rest of the amount in 4 equal yearly payments. How much
would each of the payment be assuming an interest rate of 14% compounded
annually?
7. Reliance Group has issued 5% Preference of Rs 50 lakhs to be repaid after 8 years.
How much should the company invest in a sinking fund earning 12% so as to pay
off the debentures?
8. A project whose life is 4 years is expected to generate Rs 4,000, Rs 3000, Rs 2,000
and Rs 1,000 at the end of each year. If time value of money is 4% what is the
worth of series of cashflows today?

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