Healthy Food Ltd. Is considering to introduce a breakfast cereal in the market.
The estimated cost of the project is Rs 49 crore. The project cost can be
charged to profit and loss account onstraight line basis over seven years for tax
purposes. The estim
NPV and IRR Calculations
Ex.
1
A project will cost Rs 50,000 today. It is expected to generate cash flows of Rs 30,000, Rs 25,000
and Rs 15,000 each year through year 1 to 3. The discount rate is 18 percent. Calculate the
project's NPV and IRR.
IRR of An
Time Value of Money Excel Financial Functions
Future Value
FV(rate,nper,pmt,PV,Type)
Present value
PV(rate,nper,pmt,FV,type)
Annuity payment/receipt
PMT(rate,nper,PV,FV,type)
IRR (yield) of an annuity
Rate(nper,pmt,PV,FV,type,guess)
Present value of uneve
HEALTHCARE COMPANY LIMITED:
Financial Statement Analysis
The next three worksheets give the company's balance sheet
(BS), profit and loss statement (P&L) and per share data for
five years. You need to comment on the company's financial
performance. Specif
Beta Calculation are two methods of calculating intercept (alpha, ) and
Problem 1: There
beta () of the characteristic line for a firms equity share. The direct method
is to calculate covariance and variances. The Excel has a function,
Covariance, under i
OPTION VALUATION: Black-Scholes Model
An investor is interested in writing a three-month call option on
Infosystem's share. Infosystem's share is currently selling for Rs
210. The volatility (standard deviation) of the share returns is
estimated as 67 per
Valuation of a Firm
P Ltd. is thinking of acquiring Q Ltd. Ps P/E ratio is 12 and it has a weighted
average cost of capital of 14 percent. The financial manager of P has prepared the
forecasts for the Qs operations for the next 10 years. He was not sure a
Investment Analysis and Scenaio Building
A company is considering an investment project costing Rs 160 crore. It is
expected to have a useful life of 8 years and salvage value of Rs 12 crore.
The project cost will be depreciated at 25% WDV method on block