Subject - Corporate Finance

1. Please help to prepareacommonsizeBalance Sheetfromtheaboveinformation.Pleasebriefly compare the companies for some very noticeable differences in the performancematrix.Whenyoudothecommonsizestatementsthiswillbecome veryevident.

Rsinlakhs

	Ason31st March,2021
Particulars	CompanyA	CompanyB
FixedAssets	25495	15889
Investments	13888	9852
OthernoncurrentAssets	2588	4522
TotalNonCurrentAssets(A)Subtotal	41971	30263
Inventory	25888	12555
Receivables	12000	18800
Cashandcashequivalents	1522	2522
Othercurrentassets	155	258
TotalCurrentAssets(B)SubTotal	39565	34135
TotalAssets (A)+ (B)	81536	64398
ShareCapital	10000	11300
ReserveandSurplus	45000	25000
TermLoansandothernoncurrentliabilities	15000	20000
TotalNonCurrentLiabilities(C)	70000	56300
BankOverdraftlimits	6500	4098
TradePayables	2536	2000
OtherCurrentLiabilitiesandProvisions	2500	2000
TotalCurrentLiability(D)	11536	8098
TotalLiabilities	81536	64398

11

Year	Amount	Discountfactor 10 %
0	-80000
1	10000	0.9091
2	15000	0.8264
3	20000	0.7513

2. Please helpcalculatetheNPV,IRRandDiscountedPaybackperiodfromtheinformationgivenbelow .CostofCapital10%

4	25000	0.6830
5	30000	0.6209
6	35000	0.5645

12 Yourdivisionisconsideringtwoinvestmentprojects,eachofwhichrequiresan

. upfront expenditure of INR 300 million. You estimate that the cost of capital is 10%andthattheinvestmentswillproducethefollowingafter-taxcashflows(inmillionsofdollars):

Year	ProjectA	ProjectB
1	60	300
2	120	120
3	180	96
4	240	12
10%discountfactorgiveninprevious question

1. Ifthetwoprojectsareindependentandthecostofcapitalis10%,whichproject

orprojectsshouldthefirmundertake?

1. If the two projects are mutually exclusive and the cost of capital is 13 %,which project should the firm undertake? (Mutually exclusive means thatonly one project can be undertaken like a bridge or a barge for crossing ariver. Youdon'tneedboth )

Discountfactor13%

Year
0
1	0.8850
2	0.7831
3	0.6931
4	0.6133