Question
Firm purchased plant Rs. 250,000; foundation cost paid 15,000 and installation charges Rs. 38,000. The projected sales of the company for the first year is
Firm purchased plant Rs. 250,000; foundation cost paid 15,000 and installation charges Rs. 38,000. The projected sales of the company for the first year is 400,000 and this sales will grow by 5% per annum for next five years. However, Companys EBIT would be near 15% of sales and Interest expense 5% of sales. Corporate tax rate is at 30% and Cost of capital 15%.
Calculate Profitability Index (PI).
Calculate the Discounted Payback Period.
Calculate Modified Internal Rate of Return (MIRR).
Calculate Internal Rate of Return (IRR).
Calculate Net Present Value (NPV).
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