Icmap, accounting, Basic Statistics

03 (a) Explain the term capital rationing and suggest the criteria to be used in ranking projects under capital rationing. (05)
(b) There are three projects X Y and Z having following cash outflow and net present value.
(Rupees)
Project Cash out Flow NPV
X 80,000 30,500
Y 110,000 20,650
Z 105,000 27,000
There are 3 companies Alpha Beta and Gama with capital budget for the current year of Rs. 100,000 Rs. 150,000 and Rs. 200,000
respectively.
Required:
i) Calculate the profitability index (03)
ii) Rank the projects using the profitability index(PI). (03)
iii) Suggests which project each company will take.
Posted Date: 2/6/2012 12:32:17 AM | Location : United States







Related Discussions:- Icmap, accounting, Assignment Help, Ask Question on Icmap, accounting, Get Answer, Expert's Help, Icmap, accounting Discussions

Write discussion on Icmap, accounting
Your posts are moderated
Related Questions
'Statistics is the backbone of decision-making'. Comment.

1. A researcher is comparing two middle school 7th grade classes. One class at one school has participated in an arts program (involving putting on a musical play) which emphasized

state the condition followed by dimple truss.

You have the following information about rates in London for Eurocurrency loans of one-year duration, the exchange rate between the USD and euros, the currency in which you want fi

if a series of three observations has a mean andd median of 4 and mean absolute deviation of 4/3. what is the series

A researcher working for a drug company is interested in investigating the effect of storage on the potency of one of the company's drugs. 10 freshly produced bottles of the drug a

What is cut-off date A chosen manually date whereby transactions usually are stopped to give for closing of the books of accounts for a known period: for audit purposes,

1. Mention the characteristics of Statistics. Explain any two applications of Statistics.

Q. Example of inference? Ans. Thirty students from a college were surveyed and classified according to two variables: (1) gender (M/F) and (2) major (liberal arts, busines

Isotopes Elements having same atomic number Z, but different A mass number for example 126C, 146C and 11H 21H, 31H are isotopes of carbon and hydrogen. Isotones Elements havi