Explain basril plc, Financial Management

Assignment Help:

BASRIL PLC

(a)

(i) Analysis of projects assume they are divisible.

2381_Explain BASRIL PLC.png

Project 2 NPV at 12% = (140800 × 3·605) - 450000 = $57584

Project 2 profitability index = 507584/450000 = 1·13

The optimum investment schedule engages investment in projects 3 and 2

2267_Explain BASRIL PLC 1.png

 

(ii) If the projects are supposed to be indivisible the total NPV of combinations of projects must be considered.

1832_Explain BASRIL PLC 2.png

The most favourable combination is now projects 1 and 3.


Related Discussions:- Explain basril plc

Evaluate financial report and analysis, Project Specifications Complete...

Project Specifications Complete an individual Financial Report and Analysis. You will select a company that you would like to analyze based on the parameters provided by the

Compounding or future value concept, Compounding or Future Value Concept: -...

Compounding or Future Value Concept: - Under this process of compounding the future worth of all cash inflows at the end of the time horizon at a particular rate of interest are fo

Illustrate working capital cycle in a manufacturing business, Working capit...

Working capital cycle in a manufacturing business Average time raw materials are in stock (raw materials/purchases x 365 days)   Plus   Time

Capital Budgeting Decision Problem, SCL Ltd., a highly profitable company, ...

SCL Ltd., a highly profitable company, is engaged in the manufacture of power intensive products. As part of its diversification plans, the company proposes to put up a windmill to

What are the weaknesses of the traditional approach, What are the Weaknesse...

What are the Weaknesses of the traditional approach The traditional approach to the scope of finance function evolved during 1920s and 1930s and dominated academic during 40's

Role of special purpose vehicle, The financial institutions tha...

The financial institutions that originate the loans sell a pool of cashflow-producing assets to a specially created third party that is called a

Explain the financial desirability of burley plc, BURLEY PLC Financial...

BURLEY PLC Financial desirability In a real-terms analysis the real rate of return necessary by shareholders has to be used. This is found as follows 1 nominal rate/1 i

Credit spread risk, A credit spread refers to the difference in inter...

A credit spread refers to the difference in interest rate between a corporate bond and a comparable maturity government bond. Suppose interest rate on a five-year

Dd-aa model, a Suppose you are the TA of Econ 3602 and one student does not...

a Suppose you are the TA of Econ 3602 and one student does not know how to derive the DD schedule. Show this student how to derive the DD schedule. Support your answer with equatio

Calculate most profitable investment, TC  Shipping Ltd has decided to purch...

TC  Shipping Ltd has decided to purchase a machine to augment the company's installed capacity to meet the growing demand for its products. There are three machines under considera

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd