Re: [ vuZs.net ] MGT201 Assignment Solution

Solution of Financial Management MGT201 by

Question#1

NPV= -IO+sum of CFt/(1+i)t ---------------------- HO page # 41

here

-IO= 700000

CF= 162000 n 173600 n 185550 n 189850 n 192980

I = 8% = 0.08

T = 1 ,   2 ,3  4,   5

 

NPV= -700000+ 162000/(1+0.08)^1  + 173600/(1+0.08)^2    +  185550/(1+0.08)^3  + 189850/(1+0.08)^4  + 192980/(1+0.08)^5

 

NPV=   now calculate

 

Question#2

PI = {sum CFt/(1+i)^t}/IO  -------------------------- HO page #42

 

PI = {sum 163000/(1=0.09)+167456/(1+0.09)^2 + 172850/(1+0.09)^3 + 177940/(1+0.09)^4 + 181550/(1+0.09)^5}/830000

PI =

 

Question#3 ----------------------- HO page # 40

 

Payback period for 1^st project

Investment = 700,000

So 700,000-(cash inflows )

    162000+173600+185550+189850=711000

so payback period is about $ years

 

Payback period for 2^nd  project

Investment = 830000

So 830000-(cash inflows)

163000+167456+172850+177940+181550=862807

so payback period is about 5 years 

On Thu, Apr 12, 2012 at 7:06 PM, razaazeem <mc090404558@vu.edu.pk> wrote:

dears plzzz send me mgt 201 i m w8ng

On Thu, Apr 12, 2012 at 1:41 PM, mc090402186 Iqra <mc090402186@vu.edu.pk> wrote:

hare PI is 0.8 which is not acceptable and wrong
the actual PI is 1.02 which is = or > 1.0 so it is acceptable plz
correct ur ans arif and i cant understand he u calculat peyback period
em thnkful to u if u help me or send me caculation of pay back period

On 4/12/12, mc100404074 Arif Ali <mc100404074@vu.edu.pk> wrote:
> Dear All,
>
> Based on my workings the results of MGT201 assignment 1 are as follows:
>
> NPV = 17,013.95
> PI =  0.80 < 1
> Payback Period:
> Proj A = 3 years and 11.3 months or 3 years and 343 days
> Proj B = 4 years and 9.832 months or 4 years and 299.06 days
>
> Please notify if anyone has different answers.
>
> Thanks,
> Arif
>
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