Cost of preference equity-irr , Financial Management

Assignment Help:

1. Find out the present value of Rs. 10,000 to be required after 4 years if the interest rate is 6%.

2. A Firm can invest Rs. 10,000 in a project with a life of three years.

The projected cash inflow are as follows:

Year	1	2	3
Cash inflows(Rs.)	4,000	5,000	4,000

The cost of capital is 10 % p.a. Should the investment be made ?

[ Hint : DCF @ 10%, for 1^st year =0.909, for IInd year = 0.826, IIIrd Year = 0.751 ]

Write short notes on the following:

3. IRR

4. Cost of preference Equity

Related Discussions:- Cost of preference equity-irr

Ratio calculations from financial statements, Ricardo Martinez has prepared...

Ricardo Martinez has prepared the following financial statement projections as part of his business plan for starting the Martinez Products Corporation. The venture is to manufact

What difference does it make ordinary annuities, If you are doing PVA and F...

If you are doing PVA and FVA problems, what difference does it make if the annuities are "ordinary annuities" or "annuities due"? In PVA or a FVA of annuity due trouble, annuit

Determine the formula to solve payment needed for a car loan, Which formula...

Which formula would you use to solve for the payment needed for a car loan if you know the interest rate, length of the loan, and the borrowed amount? Describe. To solve for k

Common-size analysis, Common-size Analysis • Prepare a Common-size Analy...

Common-size Analysis • Prepare a Common-size Analysis for the Balance Sheet and Income Statement • This should include about 12 accounts in the Balance Sheet and about 10 Inc

Is depreciation the loss of value of fixed assets, Is depreciation the loss...

Is depreciation the loss of value of fixed assets No. An operative (and not a pseudo-philosophical) explanation of depreciation might be: it is a number that allows us to save

Convertible bonds, Convertible bonds are the debt instruments issued which ...

Convertible bonds are the debt instruments issued which can be converted after a pre-specified date for a pre-specified number of securities (generally equity stock). I

Profit & loss account, waht are the basic functions of profit & loss accoun...

waht are the basic functions of profit & loss account

Pull strategy, Pull Strategy Pull strategy define a marketing appr...

Pull Strategy Pull strategy define a marketing approach in which a manufacturer promotes a product directly to consumers in the hopes that the consumers will then request

Analysis of cash and liquidity, • Graph the Current and Quick Ratios for th...

• Graph the Current and Quick Ratios for the five years. • Analyze observations of the trends you observed. • Support you analysis with information you observe from the Trend and

Treasury yield curve, Treasury securities are government bonds issued...

Treasury securities are government bonds issued by the US Treasury Department. These are issued through the Bureau of the Public Debt. They are debt-financing ins

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages