Solution 4 Solution 10

Year CF FV
1 5000 6655 (65 + (1000-900)/10)/(1000+900)/2
2 4000 4840 65 10 950
3 3000 3300 75 950 7.89%
4 2000 2000
Solution 11
Total 16795 TOC BV Cost

Debt 500000 5%
Solution 5 Prefrence 200000 8%
₹ 434,596.87 Equity 800000 15%
RE 500000 15%
Solution 6
Year CF PV Total 2000000
1 22000 20000
2 15000 12396.69 Solution 12 A

3 28000 21036.81 Year CF CCF

4 25000 17075.34 1 4200 4200
2 4800 9000
Total 70508.85 3 7000 16000
4 8000 24000
Solution 7 5 2000 26000
₹ 880,945.44

Solution 8 2+(15000-9000)/(16000-9000)
2 6000
20 =2*1.05/Ke-.05 2 0.857143
0.105 0.155
15.50%

Solution 9
(14 + (100-99)/6)/(100+99)/2

14 0.166667 99.5
14.1666666667 99.5 14.24%
 Solution 13
Year
1
2
3
4
5
Weight Cost MV Weight cost

0.25 1.3% 600000 0.24 1.20%

0.1 0.8% 400000 0.16 1.28%
0.4 6.0% 1500000 0.6 9.00% Solution 14
0.25 3.8% Project X Invest.
Salvage Value
1 11.8% 2500000 1 11.48% Life of Project
Depreciation SLM
B

CF CCF Year
4200 4200 1
4200 8400 2
4000 12400 3
5000 17400 4
10000 27400 4

-9000)/(16000-9000) 3+(15000-12400)/(17400-12400)
7000 3 2600 5000 NPV
2.857143 3 0.52 3.52
Project X Invest.
Salvage Value
Life of Project
Depreciation SLM

Year
1
2
3
4
4
Project X should be accepted due to higher NPV

Solution 15

Project X Invest.
Salvage Value
Life of Project
Depreciation SLM

Year
1
2
3
4
4

NPV

Project X Invest.
Salvage Value
Life of Project
Depreciation SLM

Year
1
2
3
4
4

NPV
Project X should be accepted due to higher NPV
C. IN. PVCF PVCCF
6000.00 5263.16 5263.16
34000.00 29824.56 35087.72
46000.00 40350.88 75438.60
80000
26000.00 22807.02 98245.61
12000.00 10526.32 108771.93

3 + 4562 3.20 Years

3 + 80000-75438 -------
-------------------- 22807
98245-75438

200000
40000
4
40000

TAX @ Cash Inflow PV. Cash

EBDT DepreciatioEADBT 50% EAT (EAT+Dep.) Inflow @10%
90000.00 40000.00 50000.00 25000 25000.00 65000.00 59090.91
70000.00 40000.00 30000.00 15000 15000.00 55000.00 45454.55
80000.00 40000.00 40000.00 20000 20000.00 60000.00 45078.89
90000.00 40000.00 50000.00 25000 25000.00 65000.00 44395.87
40000.00 0 0.00 40000.00 27320.54

Total 221340.76

NPV 21340.76

180000
40000
4
35000

TAX @ Cash Inflow PV. Cash

EBDT DepreciatioEADBT 50% EAT (EAT+Dep.) Inflow @10%
85000.00 35000.00 50000.00 25000 25000.00 60000.00 54545.45
65000.00 35000.00 30000.00 15000 15000.00 50000.00 41322.31
50000.00 35000.00 15000.00 7500 7500.00 42500.00 31930.88
50000.00 35000.00 15000.00 7500 7500.00 42500.00 29028.07
40000.00 40000.00 40000.00 40000.00 27320.54
 Total 184147.26

NPV 4147.26
d be accepted due to higher NPV

200000
40000
4
40000

Cash
Inflow
TAX @ (EAT+Dep PV. Cash
EADBT 50% EAT .) Inflow @10%
90000.00 45000 45000.00 85000.00 77272.73
70000.00 35000 35000.00 75000.00 61983.47
80000.00 40000 40000.00 80000.00 60105.18
90000.00 45000 45000.00 85000.00 58056.14
40000.00 40000.00 27320.54 Salvage Value

Total 284738.06

PI 1.42

180000
40000
4
35000

Cash
Inflow
TAX @ (EAT+Dep PV. Cash
EBDT 50% EAT .) Inflow @10%
85000.00 42500 42500.00 77500.00 70454.55
65000.00 32500 32500.00 67500.00 55785.12
50000.00 25000 25000.00 60000.00 45078.89
50000.00 25000 25000.00 60000.00 40980.81
40000.00 40000.00 27320.54 Salvage Value

Total 239619.90

PI 1.33
d be accepted due to higher NPV
Salvage Value

Salvage Value