Exam Test on Management and Others

Table of contents

Question 1

Evaluate the project proposals as under:

  • Discounted Cash Flow
  • Payback period methods, pointing out their relative merits and demerits
  • Under what circumstances is the pay back period method and the NPV Method used for evaluating projects.

Question  2

  • (A)What is the rationale for the NPV Method? Discuss the feature of the NPV Method?
  • (B) Teja international is determining the cash flow for a project involving the replacement of an old machine by a new machine. The old machine bought a few years ago has a book value of Rs 800,000 and it can be sold to realize a post-tax salvage value of Rs 900000. It has a remaining life of 5 years after which its net salvage value is expected to be Rs 200,000. it is being depreciated annually at a rate of 25% under the WDV method. The incremental working capital associated with this machine is 500,000. The new machine cost rupees 300,000. It is expected to fetch a net salvage value of Rs 1. 500,000 after five years. The depreciation rate applicable to it is 25% under the WDV method. The new machine is expected to bring a saving of Rs 650,000 annually in manufacturing costs(other than depreciation).

The tax rate applicable to the firm is 30%:

  • a)Estimate the cash flow associated with the replacement project.
  • b)What is the NPV of the replacement project if the cost of capital is 14%.

Question 3

  • a)The management of Parmila Ltd. is considering an investment project costing Rs. ,50,000 and it will have a scrap value of Rs. 10,000 at the end of its 5 years life. Transportation charges and installation charges are expected to be Rs. 5,000 and Rs. 25,000 respectively. If the project is accepted, a spare part inventory of Rs. 10,000 must also be maintained. It is estimated that the spare parts will have an estimated scrap value of 60% of their initial cost after 5 years. Annual revenue from the project is expected to be Rs. 1,70,000; and annual labor, material, and maintenance expenses are estimated to be Rs. 15,000, Rs. 0,000 and Rs. 5,000 respectively. Calculate the net cash flows for each year and cost of the project. Evaluate the project at a 12% rate of interest.
  • b)How gestation period of an on-going project affects Project financing decisions?

Question 4 (A)

The data concerning a site development project at the end of the 10th week of Implementation is given below: ActivityProgress (%) t the end of 10th week budgeted Cost at Completion (BAC)Actual Cost of work performed (ACWP) PlannedActual(Rs. Lakhs)(Rs. Lakhs).

Question  4 (B)

  • a)  S Limited has Rs. 10, 00,000 allocated for capital budgeting purposes. The following proposals and associated Profitability Index have been determined. ProjectAmount (Rs. )Profitability Index 1 2 3 4 5 6300,000 150,000 350,000 450,000 200,000 400,0001. 22 0. 95 1. 20 1. 18 1. 20 1. 05 Which of the above investment should be undertaken? Assume that the Projects are indivisible and there is no alternative use of the money allotted for capital budgeting.
  • b) Project Cost Estimation is a vital factor for starting the business. As a Financial Analyst, you are required to prepare the steps for cost estimation.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyHomeworkGeeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Don't really see any of sources I provided, but elsewise its great, thank you!
Customer 452697, May 8th, 2021
Business and administrative studies
Customer 452773, February 23rd, 2023
Customer 452591, March 18th, 2021
English 101
IThank you
Customer 452631, April 6th, 2021
Business and administrative studies
Excellent job
Customer 452773, March 9th, 2023
I just need some minor alterations. Thanks.
Customer 452547, February 10th, 2021
English 101
great summery in terms of the time given. it lacks a bit of clarity but otherwise perfect.
Customer 452747, June 9th, 2021
Thank you!
Customer 452545, February 6th, 2021
Business and administrative studies
Customer 452773, February 23rd, 2023
Criminal Justice
The paper was not accused of plagiarism and was written very well. I will let you know the grade once it is graded. Thank you
Customer 452671, April 26th, 2021
Business and administrative studies
Thank you
Customer 452773, March 19th, 2023
Thank you!!! I received my order in record timing.
Customer 452551, February 9th, 2021
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes


eskişehir escort
- Korsan taksi Antalya


eskişehir escort
- Korsan taksi Antalya