15% Case study - Question No. 2 Calculate any three of the following criteria and share your observations. Cost of capital 10% a) NPV b) IRR C) MIRR d) Payback period e) Discounted payback period| Year Compounding percentage 6% 7% 8% 9% 10% 11% 12% 13% 14% 1 1.0600 1.0700 1.0800 1.0900 1.1000 1.1100 1.1200 1.1300 1.1400 21.1236 1.1449 1.1664 1.1881 1.2100 1.2321 1.2544 1.2769 1.2996 3 1.1910 1.2250 1.2597 1.2950 1.3310 1.3676 1.4049 1.4429 1.4815 4 1.2625 1.3108 1.3605 1.4116 1.4641 1.5181 1.5735 1.6305 1.6890 5 1.3382 1.4026 1.4693 1.5386 1.6105 1.6851 1.7623 1.8424 1.9254 61.4185 1.5007 1.5869 1.6771 1.7716 1.8704 1.9738 2.0820 2.1950 7 1.5036 1.6058 1.7138 1.8280 1.9487 2.0762 2.2107 2.3526 2.5023 8 1.5938 1.7182 1.8509 1.9926 | 2.1436 2.3045 | 2.4760 2.6584 2.8526 9 1.6895 1.8385 1.9990 2.1719 2.3579 2.5580 2.7731 3.0040 3.2519 10 1.7908 1.9672 2.1589 2.3674 2.5937 2.8394 3.1058 3.3946 3.7072 1.1500 1.3225 1.5209 1.7490 2.0114 2.3131 2.6600 3.0590 3.5179 4.0456 15% 0.8696 0.7561 0.6575 Year 6% 7% 10.9434 0.9346 20.8900 0.8734 30.8396 0.8163 4 0.7921 0.7629 5 0.7473 0.7130 6 0.7050 0.6663 70.6651 0.6227 80.6274 0.5820 9 0.5919 0.5439 10 0.5584 0.5083 Given : Discounting percentage 8% 9% 10% 11% 12% 13% 0.9259 0.9174 0.9091 0.9009 0.8929 0.8850 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.7350 0.7084 0.6830 0.6587 0.6355 0.6133 0.6806 0.6499 0.6209 0.5935 0.5674 0.542 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.5002 0.4604 0.4241 0.3909 0.3606 0.3329 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 14% 0.8772 0.7695 0.6750 0.5921 0.5194 0.4556 0.3996 0.5718 0.4972 0.4323 0.3759 0.3269 0.3506 0.3075 0.2697 0.2843 0.2472 Balance Sheet of XYZ Limited for two financial years. 2019-20 2020-21 Equity and Liabilities 1. Shareholders Funds (a) Share Capital (b) Reserves & Surplus 2. Non Current Liabilties 3. Current Liabilities 1000000 1200000 0 800000 3000000 1000000 1800000 375000 825000 4000000 1260000 400000 1792000 0 Assets 1. Non Current Assets (a) Fixed Assets (b) Non Current Investments] 2. Current Assets (a) Inventory (b) Trade Receivables (c) Cash and Cash Equivalents 913000 405000 22000 3000000 1240000 910000 58000 4000000 Cashflow of two proposals is given. Year o Year 1 Year 2 Year 3 Year 4 Project 1 -30000 15000 20000 25000 30000 Project 2 -100000 50000 40000 30000 20000 Capital Structure of a company 1 8 % Debentures 2 10 % Preference Shares 3 Equity Share Capital 4 Reserves and Surplus 10000 5000 20000 25000 Corporate Tax 50 % Floatation Cost 5% Cost of Capital for company 12 % Share holder expectation 15 % and shareholder taxation 30%