(All amounts are in Rs.

)
Q 1.

.~al~>.L:,,~e
p?)~- Back Period.
Capital cost

Project A
Iroject B

(J 2.

90,000
90,000

Year 1
30,000
30,000

Future Cash Inflows

Year 2
Year 3
Year 4
40,000
20,000
15,000
30,000
15,000
15,000.

Year 1
50,000
50,000

Future Cash Inflows

Year 2
Year 3
Year 4
40,000
20,000
15,000
30,000
15,000
15,000.

Calculate Pay- Back Period.

Capital cost

Project A
Project B

100,000
100,000

Q 3,

Calculate Net Present Value and Profitability Index (P I) while discount rate is 10%.
Capital cost
Future Cash Inflows
Year 1
Year 2
Year 3
Year 4
8,00,000
5,00,000
3,00,000
5,00,000
2,00,000

Q 4.

Calculate Net Present Value and Profitability Index (P I) while discount rate is 10%.
Capital cost
Future Cash Inflows
Year 1
Year 2
Year 3
Year 4
10,00,000
3,00,000
5,00,000
3,00,000
2,00,000.

Q5. Shah Chemicals has developed a new plant and funds allotted for new plant is Rs. 1 Cr. (+,10 lakhs), where as all machines if installed at same time will cost upto Rs. 2Cr. Shah Chern. Has
approached you to evaluate the investments and give a suitable advise on the basis of data on
cost and benefit from each of five machines.
Machines

Initial Cost
PVOfCF

50
65

70

25
30

30
33

25
35

82

(Rs. In Lacs)

PAGE NO.
DATE:

____~~~~~~~~~~~-=O-fL~ct~-~~--~-------------/'.,....

~_J

~-

- -

he
__

-------<d-t-+-"""-'->...L

7.

--

4- 1lb.Qt

____

a~

in

0-

and.

?ifTen:.s
-_

f>aYQd.o.

otif!fJ~~ed.-_W?e.9 of

-the

GO O~'__=___'_"'_';-'------I

~-,-.

of
de.

Con~h-

I ef-,"oe .e1as-bci+-:;

._.___

e~~iens/oo

-~'"'5f_"J~....t2-J--=~dL-.'

------=-b-c-l-J-fftp(ru n -the

.A

~ern O.Y?k:t __, -,---------1-

tioos fo_-I.:be: / a.J.!.L~G>,+.f--"_~"'-'-"''---'---LJ[,..oLL~~J

_+- _

f:.yt;ase I/dec-rease

--1---'-'--1"

-------

~.L,........

/'(' -

--------":"+--l--\,Ul--'--J..-<--<.--b.f-L-'o~_V_J.e~-a~l.LW.L1j

~tt-~---j

--------------------------1

--~~e

-the fb1k2wi~

with -the

~\CeD~---f02:.~-

I lixro .'-

t..J;

-Cl

erical

drAct:J

OJ..f.p.

N1

----'8 ~c=:~_
-----:::-olJ-., -I

. -. lof
1

-~

cuss

. --fAe ro efh

ds' of

tY)

e as

L{

no:! eJasticJt:/
_

-ceJe4LCliJce/--app.-LdLCJ..b2litJ
+b.L..CDocP-p-i of e.Pa"sb cikl._oE dema.nd -~
J
. j
d Oy
I &.p-W-D-::tb.e-..i-etifQJ:::iLLD CfZL () tifYJ e pe
0
oLLt-

p?CC/cb'ca)

---jI

10"'-+-'--

'----_

+-1

___

1:2...

y)'

T!QJe

f1ay.26aJ/"'5

----13J~~e-~t
ii

vv i tb

Q<

---J!f.;}1--}lpsc-nbe
.

--+-!""-Y"f.>--k'caou

1.5.7
I fAcdh
--the
J
I

--

de-wana

q I B<t1ClJ

__

1_ -

f';rVmo:Lion~--L..~Q,d""""__'<b_'__"c"_""d.~""-,,-~---------------------,.
.....

-------'-(-=:_0::ft-h's

__

-----1- - -

. -----

tLJ, ( corn e .Jdas.-<...o,,-,-'.c,,-,,'l ....

- ~-<.-r/-------c.;--------------

____

____

e~ficJ.+y

pnce

00

~aqx:QrL'k
__

--l-n

!r

r-ea.L--.i.J.le

~h-e~p-_a

,sUffly

--b;J

CoAh

--tbe

..5

j)Q~W.

1CL&t:L-8.

of
.ecDOQfY/Le:.s:...

__

pYOciucJ-idO

PCL.8i--

-:.-

~Dn

---;--- JE'__

c+

.J

_GL

_. _.__

di<caJ.JJ),5binq~turDS..L

ye,tU?r'D'l

--,-

wi.

bpi
f'LJ2~
Oum,oYl'~afY)h
=r:
jUJi&y~:lb~~~-.-aJ.1~ah1e.

'I

D_0:2~_Lu-cS.'--e412-/YL/:l
-r-/e .

----'U}J)jscu~CPft

___~--

in

+he p>cVcU7a:io~A

20DQyhons

Ana/Fs

J'

iT?

$caLe_I_~r'+b_-ld~_e

4-_d!sl?G.QQ.Qlnie_:L._D{

scaJ e.

----'

,.'

PAGE NO.:
DATE:

i~k~

--+-------Li}-'

__
c::.20!]_Q!x2J~e~
..4:.__
.dt~hQ!y)j'e

_.DL~WSs._-..l~oielC!lQL__

- -' -----.

.-cr': ~ V.

~f--scaJ~.-~

~0-:M e

p-Yai:; "ca1.-.0r4LX1p ie._~:

I,;'

=_J_--=~/~~~-::~~;,::w~~_~~:_~~'~~;_~
e-;:;;~__..
th

_.__

--=-rJs.o.CLlS'-t~

l~-QJ,LcviqJ;:e--~:s.f-o-y _m.t:_ _-fi2 U O_t-1LLC:Y_. ~-{~._f~d~.

___
___.
._

e Lko-r.JLf2:)i5..- ../-.~.--.--~', - -:....--~.-- .,__

.~
. __

.. _

_._.

__

. __

_ -:~:

_~b..~Q2::.t.._J::llLL...GQ$:.t_Ul~
_.

__

C.

O~_

.__
._... _~.

.:......:..~-=.:..=_

....__

.b:f-laJ.rl~-:&eJ-.~Quy. __Q.:~.L_~

.o.

-. _ _

.1- R ~en
j

--i.

---,

_'"
--.-._,__"

u.e..

__'

-d

J'-as-__

....---.~.--- ..~-.--- ..-.---

_.Qi_YJ/.eB._ ....ULLd..e y -;p.e. y..fcct....

.. - -.~ .. -.--.~..-

-----.

<=:

P<rOht-.

tv)CMi~OIL

.---_J.L~ ,_$ aLC'~ .

OX!.

. _ __ _ _ _

2J~Vz.cUiQr:L_ . ._._

J'

_.2.:0:

f.

v!

!.!JYl

Or>

...

. _ .. _

.Regf_O~/~6)lL-ty.
10 IT'

e-iLbo~

the

in

..
J
sho'Yt: ~:::-.'.

reo orvza,f. ...2P /'-;t

lcU-rYnUIY}. beaY'ab/e

--.--

---/osseJ

&):
2-7

S'h ul:

J' itA
,flO~

doiA./1(

--h~nl

Conc4twn.s

Urudpy

fYVhls

?f'y~cl
in

..

--.---------.

_ -.-. .

No?r1YLcU? YOh't: .

.d]:

. _ _. __

-- -q}~S;==> vtYZ.f2L pYD/it

c] . S ~

.__ .

--------

pl?xkd COfYlpe6.-boQ
WU:CL_dJagrQfJY2 / -err/air; .-the. -foJIOWf
UfLe{ey
COrYLf

. __

oi

b.e-sctl.b.e._ ka.:uYe...:3

. pey-k d

.... bJ ..;

.l__

2b

_.

.esptau .co n dI-b ons

-f/ Y!Y7

..

__. __ .. , __ _ _ ..

;~9r:~

.. - -.- t.J.iJ~. S'~e.~_ .Oy 9Yf2l,~

24WI t-h ih e.. . hclp 0 F.
. -

.._.

._.~J-]j . Undey f ey/e lj-- c rY1f eh:hOfJ; A'R fY1R. b { 5 CLLs.s.

.
.
2..3] I b e.s Colb e. 0bj e wyes of a --h qJy) /Js.p t::.u-fi.C.Lt-i on] --. . --.--..

.g.,

._ ...
"._.

-_._

+- TQf::aL. R. ev~.

=e=> -f.-.lCY1fe.Y:&c1.-.-rrLQ-d5:d-.-,

i e?j u.JlLb n

I--..;c:~-'-

"_C

--~71Co.!YLf.fJ,re. :L .fd2illro-oS.:t .. h_\Leragt-e.-:.....AVLe.LLLle_,_l1a.?-:aLL.

J._.

-J

~~_. __

yy.~~_irr_si?2Dd

1.----...:..-.------~.-CQsL--~----i.-;d_.lL..s.by---ifs.- ..--U.:~_:S...~~~--

-~-

-.

20.~.
11'D -eY1-r.ce---QD-~-en-Y.~J2L-CLd-LJL::e..~.o.k.---o.:J--r:!dn.-ZJ1.lJL~"'&--.
'
,~~A~.
'La'
.'.

- ---.---

--:-1.- ..

....

me

.,

=r=>: enj0tts
Co

s-ur>: '_

CofY)rY)e.rl-{

only

PAGE NO
DATE:

.J -"

'.

--:--<-.--'-----_--+--

rvu2nDfi-n'--"-""~b,+--J

-----+-

.~+----'~~..v~"---.L.IVLO.~'-L.n.uO~t!-LIO--<-=~t"--4------.--.-.-.
. tyLO~f-2f)-c<D~. t:;"YAp-. --'--'-,-~.

---~Ll-J"_t_~.L..LJ..-1-'-U

______

+-'-'~::.L..><:I~Q'I

_.

.--'

",.--,---

'--'~L-

1, ~~_'_"""~_'_"_'___I_~"-"-Yl-L',..,c:::'----d"'""1.-"'-'sLrlrrun
Q:fion.? What
-. --~.-r
-fo Y/Y)
bQse.s~ 0 f J)~~_L..L!'
~

f)

"-'C

dis-c.n fYU,~-():JLJ.Ll.D;P..oJ.{..~/-.~--'--"'
oZ
J
'. C7

----to;

Y?:./)

f:

ryzfl'Yk

eb-

fuJL&-diie.."dL2

deinQn~--==wfDLuti.Cs

JId.QO~fy

____ I-~
--~3"-?>..L.:J+-1 &'ll ain

~1 a
cU.t'YlP ing

cb,,/o

eJ.:.a;sti c( -tieSf----~

b~e.Y;>nee

/e9seV

in +be mo'lCkpf=

~d.

foeJa",hc

Is

-"-'.--

a,r.Jy ""ben

~tnfi'to.b!e

discd'Y'-inO:bon

-L.cLiftf

___

-!-L<I.d-'-'~\.-\.-L..!.......L.<---_-4--_

deFr~<!2f
_p-ric:e
's
. .u
.~~"""'--L.L/..-/,.-----'------L.
l.0l.J.b_:be,bel,'? ~f ~ &ag-rO M )~~~l.iJL~:=L~IU-4-\---

. ~..ce

____

r)

,3

-LaiLJ

t-

Ye i/;;-s

___ 3.1}_.

-- .3-~J

.------

=::..a._Spe.cLaLCOJf

e of?

Y]ce

I .

'~ ddscYf/YliQabon
-.3-=~4=.-,/HJ

IiN bat- .-a.> -Ihe

-.-nf rrv:mo;w !idle com;'eM:bon

I'eaJ;LI-=s

---~Ji~ce--QLFh2~

l2J

'"se)h

I
I

._---=3-'='-'6

tv] Dna])
I

C15t;

oU-so C

d.i+kn:nboj;joL.-{

convert of

Com /) ezilis:. lO

J-~~Qjbe__the. k a h

----+1--

OR.

-----

__..

(!y:Q~--LU1~d,..(....C.e..L.y-----.

)~.3

C.. - OJi.(J.2?_oLy

-----.- -- ----..
--.--

--------+ ..
------~--___1--

--

____

concept of

. -,-!&plaJn The

_-=-.3

7'J-~SO_LcL--~_.s~--QQ.,2e.d_-no_&tiEaJ-

- _3)JnE.!1fICuJL~fbe
f M~
--"
!l}--It:uiU.j= -Ii, e ic(Jf~.__

CUYv'e

~e'!Yli2t7d

Le.Ce.gS QL~

;,_

) ........J

I~

Df

<

-twde-_cpf~.510t3'iS
fjcLe
'LaJJ.J.CLe5 __ of Jo f;e 5 to (J1.D6aL
-

__

C( __

'

.___