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  • Question No.2 Beta Limited: Group Members

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    Osama Yaqoob
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    1. The document contains calculations related to an investment option in China, including NPV, IRR, MIRR, and discounted payback period. 2. The NPV is calculated to be -191.88 using a discount rate of 10%. The IRR is calculated to be 6% using interpolation. 3. The MIRR is calculated to be 8% based on the reinvestment rate of the cash flows and a discount rate of 10%.

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    FM assignment Q2

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    1. The document contains calculations related to an investment option in China, including NPV, IRR, MIRR, and discounted payback period. 2. The NPV is calculated to be -191.88 using a discount rate of 10%. The IRR is calculated to be 6% using interpolation. 3. The MIRR is calculated to be 8% based on the reinvestment rate of the cash flows and a discount rate of 10%.

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    21 views7 pages

    Question No.2 Beta Limited: Group Members

    Uploaded by

    Osama Yaqoob
    1. The document contains calculations related to an investment option in China, including NPV, IRR, MIRR, and discounted payback period. 2. The NPV is calculated to be -191.88 using a discount rate of 10%. The IRR is calculated to be 6% using interpolation. 3. The MIRR is calculated to be 8% based on the reinvestment rate of the cash flows and a discount rate of 10%.

    Copyright:

    © All Rights Reserved
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    Flag for inappropriate content
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    of 7

    GROUP MEMBERS:

    QUESTION NO.2
    BETA LIMITED

    1 RE = USD 0.0111

    Therefore,

    1 USD = 90.09009
    Discount rate 10%

    OPTION 2

    Years CHINA
    - - 25.00 - 2,252.25
    1 - 20.00 - 1,801.80
    2 - 21.33 - 1,921.62
    3 - 22.33 - 2,011.71
    4 - 20.67 - 1,862.16
    IRR

    R NPV
    0.06 7.9
    X 0
    0.1 -191.88

    USE INTERPOLATION

    (x-0.06)/(0.1-0.06) =
    =
    (x-0.06)/0.04 =
    =
    x-0.06/0.04 =
    x-0.06 =
    =
    x =
    x =

    IRR =

    MIRR

    YEARS 0 1
    - 2,252.25 577.99

    2252.25 =

    (1+MIRR)^4 =
    =
    1+MIRR =
    =
    MIRR =

    MIRR OR

    DISCOUNTED PAYBACK PERIOD


    N DISCOUNT CASHFLOWS
    0 -2252.25225
    1 525.447747545454
    2 519.176903966942
    3 526.28945229151
    4 489.456487261799
    ASSIGNMENT NO.1

    RUPEESS

    UAE PAK T.C.F


    - - - - 2,252.25
    22.47 2,024.32 333.00 577.99
    24.15 2,175.68 350.00 628.20
    25.23 2,272.97 414.00 700.49
    23.37 2,105.41 450.00 716.61

    NPV = -191.88

    NPV using excel = -Rs191.88

    IRR using excel = 6%

    MIRR using excel = 8%


    (0-7.9)/(-191.88-7.9)

    (-7.9)/(-199.78)

    0.039543497847632
    0.0395434978476324*0.04
    0.001581739913905
    0.0015817399139053+0.06
    0.06158174
    OR
    6%

    2 3 4
    628.20 700.49 716.61
    770.54
    760.13
    769.31

    TV OF CFS 3,016.59

    3016.59/(1+MIRR)^4

    3016.59/2252.25
    1.3393672993673
    1.3393672993673^(1/4)
    1.07578360880002
    1.07578360880002-1
    0.07578360880002
    8%

    CUMULATIVE CASHFLOWS
    -2252.25
    -1726.80225245455
    -1207.6253484876
    -681.335896196093
    -191.879408934294
    PVIF Disc. Cash flows Dics.Cum
    1.00 - 2,252.25 - 2,252.25
    0.9091 525.45 - 1,726.80
    0.8264 519.18 - 1,207.63
    0.7513 526.29 - 681.34
    0.6830 489.46 - 191.88

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