Assignment on Managerial Finance

Submitted by: Jamil-Ur-Rob

Roll:589
P10-10
Initial Acceptibility based Ranking
NPV PI Ranking On PI
Investme Year (1) Year (2) Year (3) Year (4) Year (5) Year (6) Year (7) Year (8) a on NPV On NPV d e
nt b c
Press A 85000 18000 18000 18000 18000 18000 18000 18000 18000 ($4,228.21) No Worst 0.950256319276 Worst
Press B 60000 12000 14000 16000 18000 20000 25000 $2,584.34 No Better 1.0430722782365 Better
Press C 130000 50000 30000 20000 20000 20000 30000 40000 50000 $15,043.89 YES Best 1.1157222563193 Best

P10-12
Initial Payback
NPV Recommendation
Investme Year (1) Year (2) Year (3) Year (4) Year (5) period
b c
nt a
Project A 40000 13000 13000 13000 13000 13000 3.0769230769 $2,565.82 Based on the findings from Payback period and NPV, it is
recommended to choose project C as it has got the higher NPV and
Project B 40000 7000 10000 13000 16000 19000 3.625 ($322.53)
lower payback period.
2.3846153846 $5,454.17
Project C 40000 19000 16000 13000 10000 7000

P10-20
Initial NPV Acceptibility IRR Highest cost
Investme Year (1) Year (2) Year (3) a based on NPV c of capital for
nt b acceptancy -3
Project A -50000 20000 20000 20000 ($4,335.50) No 10% 10%
Project B -100000 35000 50000 50000 $1,117.78 No 16%
Project C -80000 20000 40000 60000 $7,088.02 YES 19%
Project D -180000 100000 80000 60000 $6,898.99 No 18%

P10-21
Initial Payback
Investme Year (1) Year (2) Year (3) Year (4) Year (5) Year (6) NPV (9%) NPV (0%) IRR Ranking Recommendation NPV (12%)
period
nt
Press A -150000 45000 45000 45000 45000 45000 45000 3.3333333333 $51,866.34 $120,000.00 20% Good Choose project B $35,013.33
as it has got the
$51,112.36 $105,000.00 higher IRR $37,436.61
Press B -150000 75000 60000 30000 30000 30000 30000 2.5 23% Better

P10-22
Initial Payback
Investme Year (1) Year (2) Year (3) Year (4) Year (5) NPV (12%) IRR Recommendation
period
nt
Rieger Int. -95000 20000 25000 30000 35000 40000 3.5714285714 $9,080.60 15% As the project got IRR higher than cost of capital,
the company can accept the project