Assignment 1

Sub: Corporate Finance

Section B
Date of submission: 14/02/19

1. You need Rs10,000 for your tuition expenses in 5.8 years how much should you
deposit today in a saving account that pays 3% per year?
2. You can buy a security now for Rs1000 and it will pay you Rs.1,191 three years from
now. What annual rate of return are you earning?
3. How much will a deposit of Rs500 at the end of every year for 3 years in an investment
fund earning 6% become?
4. Find the future value of Rs100 at 5% interest compounded quarterly for 3 years.
5. Which one will you choose:
a- 11% annual compounded rate of return on Fixed Deposit
b- 10% monthly compounded rate of return on Fixed Deposit

6. You borrow Rs10,000 today and will repay the loan in equal installments at
the end of the next 4 years. How much is your annual payment if the interest rate is
9%?

7. PQR Industries has issued debentures of Rs.50 lakhs to be repaid after 5 years. How
much should the company invest in a sinking fund earning 10% so as to pay off the
debentures?

8. A project whose life is 3 years is expected to generate Rs 3000, Rs 2,000 and Rs 1,000
at the end of each year. If time value of money is 8% what is the worth of series of
cashflows today?
 Assignment 2
Sub: Corporate Finance
Section B
Date of submission: 14/02/19

1. One year from now, you agree to receive Rs1000 for your laptop that you sold
today. How much that Rs.1000 is worth today if you use 6.5% interest rate?
2. Your friend deposits Rs.100,000 into an account paying 8% per year. She wants to
know how long it will take before the interest makes her a millionaire i.e
10,00,000?
3. How much will a deposit of Rs1000 in the beginning of every year for 3 years in an
investment fund earning 6% become?
4. Find the future value of Rs1000 at 6% interest compounded half yearly for 4 years.
5. Which one will you choose:
a- 8% annual compounded rate of return on Fixed Deposit
b- 9% quarterly compounded rate of return on Fixed Deposit

6. Ramanuj has taken a 20 months car loan of Rs.6,00,000. The rate of interest is 12%
p.a. what will be the amount of monthly loan amortization?
7. ABCL Company has issued debentures of Rs 50 lakhs to be repaid after 7 years.
How much should the company invest in a sinking fund earning 12% so as to pay
off the debentures?
8. A project whose life is 5 years is expected to generate Rs 5000, Rs 4,000 and Rs
3,000, Rs 2,000 and Rs 1,000 at the end of each year. If time value of money is 6%
what is the worth of series of cashflows today?
 Assignment 3
Sub: Corporate Finance
Section B
Date of submission: 14/02/19

1. Jack needed a Rs1191 after 3.4 years to pay off some debt. How much should jack
put in a saving account that earns 6% today?
2. Arun deposits Rs200,000 into an account paying 7% per year. She wants to know
how long it will take for the amount to become Rs 8,00,000?
3. How much will a deposit of Rs100 in the beginning of every year for 4 years in an
investment fund earning 6% become?
4. Find the future value of Rs10000 at 4% interest compounded half yearly for 5 years.
5. Which one will you choose:
a- 13% annual compounded rate of return on Fixed Deposit
b- 12% half yearly compounded rate of return on Fixed Deposit
6. Yash bought a TV costing Rs 13,000 by paying Rs 3,000 as down payment and
agreeing to pay the rest of the amount in 4 equal yearly payments. How much
would each of the payment be assuming an interest rate of 14% compounded
annually?
7. Reliance Group has issued 5% Preference of Rs 50 lakhs to be repaid after 8 years.
How much should the company invest in a sinking fund earning 12% so as to pay
off the debentures?
8. A project whose life is 4 years is expected to generate Rs 4,000, Rs 3000, Rs 2,000
and Rs 1,000 at the end of each year. If time value of money is 4% what is the
worth of series of cashflows today?