timevalueof money 15 annual payment of Rs.5000 are made in a deposit that pays 14% interest. How much it will accumulate at the end of the tenure. M deposits Rs.2Lakh in a bank account that pays 10%. How much can he withdraw as constant amount annually for a period of 15 years? An investor has 2 options. (a) 6000 after 1 year (b) 9000 after 4 years. Assume a discount rate of 10%. Which alternative should he opt for? Would your answer differ if the rate is 20%? You are planning to buy a car after 5 years that is presently available for 2.5 lakhs. The price will go up by 20%. How much should you deposit at the end of each year @ 6% to make your plan a success? Alpha ltd is considering to buy one of the equipments A or B. Equipment A costs Rs.75000 and results in a cash inflow of Rs.20000 per year for 6 years. Equipment B costs Rs.50000 and is yielding Rs.14000 for 6 years. The compays discount rate is 11%. Calculate the NPV of both the machines and recommend which one to buy. A project has the following cash flow from year 1 to 5 respectively; 2lakhs, 2 lakhs, 3Lakhs, 3 Lakhs, 3.5Lakhs. calculate the NPV assuming a discount rate of 10%. initial investment 10 lakh Arun borrows Rs.1500000 to purchase a home at an interest rate of 8.5% repayable in 10 years. How much is his annual EMI outgo? Prepare loan amortisation table AB ltd wants to purchase plant for Rs.3L cash or Rs.4.5L. 5 equal installments of Rs.90000 each at end of yr. The required rate 15%. Which should be considered? An investor deposits Rs.100 in a bank account for 5 years and 8% p.a interest. Find out the amount which he will have in his account if interest is compounded (a) annually (b) semi annually (c) quarterly A finance company advertises that it will pay a lump sum ofRs.44650 at the end of 5 years to investors who deposit annually Rs.6000 for 5 years. What is the interest rate?pay you 4lakh after 3 yrs if u deposit 2 lakh now ?what return has he promised?

ANS 1ANS 2 ANS 9ANS 8pv1pv2 nper15pv200000pv100annuity90000300000450000annuity5000rate10%nper5nper5rate14%nper15rate 8%rate15%fv ($219,212.07)43.8424141313pmt$26,294.76$146.93($301,693.96)option 1 is better

ANS 11ANS 6IRR Ans 2fv400000200,000.00rate 9.00%-1000000rate10%pv200000200,000.00200000nper15nper3300,000.00200000pv20000026%300,000.00300000pmt$26,294.76350,000.003000001,000,000.0023480.833500009.81%

NPV

All Cash OutAll Cash InNet Cash Flows-100,000.00-100,000Check-28,000.0080,000.0052,000-16,500.0060,000.0043,500-15,000.0040,000.0025,000-10,000.0035,000.0025,000-15,000.0020,000.005,000Annual RRR (Discount)0.2NPV2,074.97Answer:AcceptedNPV ProfileAnnual RRR (Discount) + NPV: Accept + NPV: Accept5%35,0616%32,3017%29,6378%27,0679%24,58410%22,18611%19,86812%17,62613%15,45814%13,35915%11,32716%9,35917%7,45318%5,60519%3,81320%2,07521%38922%-1,248-1,24823%-2,838-2,83824%-4,382-4,38225%-5,882-5,88226%-7,339-7,33927%-8,757-8,75728%-10,135-10,13529%-11,476-11,47630%-12,781-12,78131%-14,052-14,05232%-15,288-15,28833%-16,493-16,49334%-17,667-17,66735%-18,810-18,81036%-19,925-19,925

nonconventionalNon-conventional Cash FlowsCash OutCash Innet cashCash Flow 0-610000-61000Cash Flow 1-46485206000159515Cash Flow 2-14900046485-102515RRR15%MIRR considers both the cost of the investment and the interest received on reinvestment of cash.IRR13.73%MIRRNPV192.6315.08%

RRRNPV10%($709.50)11%($496.27)12%($300.22)13%($120.57)14%$43.4715%$192.6316%$327.5917%$449.0118%$557.5319%$653.7320%$738.1921%$811.4522%$874.0323%$926.4024%$969.0425%$1,002.4026%$1,026.9027%$1,042.9428%$1,050.9029%$1,051.1730%$1,044.0831%$1,029.9832%$1,009.18assumptions33%$981.991. Investments occurs at the start34%$948.712. reimburses the same IRR.35%$909.60MIRR. 36%$864.9437%$814.9938%$759.9839%$700.1440%$635.7141%$566.9042%$493.9043%$416.9244%$336.1345%$251.7246%$163.8747%$72.7248%($21.55)49%($118.80)50%($218.89)51%($321.67)52%($427.03)53%($534.82)54%($644.92)55%($757.23)56%($871.63)57%($988.01)58%($1,106.27)59%($1,226.32)60%($1,348.05)61%($1,471.37)62%($1,596.21)63%($1,722.48)64%($1,850.09)65%($1,978.97)66%($2,109.05)67%($2,240.26)68%($2,372.52)69%($2,505.78)70%($2,639.97)

XNPVXIRRDateCash FlowxnpvReturns the net present value for a schedule of cash flows that is not necessarily periodic. To calculate the net present value for a series of cash flows that is periodic, use the NPV functionMonths11/12/10-5000Returns the internal rate of return for a schedule of cash flows that is not necessarily periodic. To calculate the internal rate of return for a series of periodic cash flows, use the IRR function.12/12/107001/12/117002/12/117003/12/11700Years3/12/127003/12/13700xnpv603.04Days3/13/13700xirr21.64%3/14/137003/15/13700rate10%