(i) Qertion-1 Sudesh Internation is evaluating 4 Propet what expected Ganh Jlows one as plows 5 Year Cosh Plow © F Cloo000 ) t (0, 00, 000 2 2 (00 000% 3 3, 00,000 4 6, op ;oT0 3, w 000 “wy (e) wWeot 4 NPV of Tos projet» PL qr Ud count date 4 14 Perted ger a entire Peudd ? . Whee 6 Dee PY of Tru Projet 1p Tos dis ovrd rode 4 12 Peuent dor yom 1 anal yhey tery yest fy ? pret 7 [thet (nuvatment (b) hw cy NPV = et 4 tel ao NPV = Preset Vaux of (fuer) — [itiet Outglow cov [njlows Vem CF Pvct 0 — ov, ooo _ Vo pevyeoo NEMS ry 04)! 2 BF 14-30 Lg ow rod 2PM 1 ety)? = (SH EAFST 3B Zyov HHO HOMME pp Qy)S = /TLIMALUE 4 64s ORD Hevwr/(ipo.qyy = BST 24B-14 sy 3 \d0,THO Jere /C1+0.\4)* a3 5S Blo-bo pues = TSS, 163-02 NPV = ASS KROL (o09TD = + 44,825.98(b) Yeor CF 9 ~ Jo, rye - Ute, 8 7 2 — 2\woov9 13% 3 Buy (ov Un 4 pSresiere ry 5 3.00,000 167. Nev = fPucL — ~ 65,7096, Pitvourd role(s) Pv CL Worry)! = 8428S 2161/0113)? = ps660894 10.0 /C)4.56( 4) = 2,02, 49}. WS Giron +09) = 3ugorpar FAO 1 14.9.1) = 1M283790 PUCE = 924,292.36 lachod lavertmerd . 4134)242036 — [0,00,;700 Question-2 Whar 14 thu nice Lo of Ff Return of an tacestment whith involve 4 Current cutlog Of mo = Zier and sult in 6f € 60/000 for 9 years 7 TRR tp Du vase af udlath teftows (PUCL) & equal to an annudd barb rflovo Preset Vole of Gob pu freret ole Of Coarh Oudplow (ot (ottiod [rueytm ent ), 1 MUP - Yeor CarhFtows PCE (4-10) 0 = 300000 = { Goon Fy subus 2 Gov a, 566-78 3 Goer uy 078-84 4 Goroww YO 480-8 | Ss Gorsoo = 3, 247-78 6 booov FB BSBKY 3 60000 BDABUNG fuer = 2823 Nev = 844-89) C4= to) Puct (424%) ST ,0US +B? 50, 530-80 UG, 331-0! YD \sov-5! 39,495. BB 35996004 32 (02r- OF 30149919 NPV = 421,999.19 (4200)© 3 [moivoddy Pu teount yoke was Alen a Joy, af £= y, PvezZ wor E242 106 +13 BvPy wr 25,894.9% with wor not equialint do tre initiod twwestmeod. Thuy , Tht Arcount rote war derremed to 7h became dru /s an lnvet Adlationr hyp betueen 4 % PYCL, 3 That, pom tu toy it He be fourd Trrat PVCZ is net equal tothe rnehiod frwertment at d= 7 hn. Bud t+ wor obo ped That Pa valor of Initial moutmerd sf F 3,000 Vanier between Pucz at t=loy. & Pucr of Leg. Hea, TH Caw gard trad tre TRA ih yang between 2, to [0Y, Now, IRR tan be caltulated wing Pet Inter po hon brmula 34 TRR = tat Mig (45-14) when a9 lowa ‘2’ (24%) Pq ws bd hiynee ‘O(=loy) " 4% 4 1979-13 (0%.-9%) 949-19 —<(-389484) " », . Mh + ae 1% 481204 af. 4 0-207. y IRR = F-r0%f. Levee, ee Ofprorumak ZRR M4207,Question 3 + The enpeted Conk grows +f wo muuty ally 2 tly Ie Projet ,P& Gore Yeon o t 2 8 y 5 é Com) (Bev) Cov) 250) ee Yon a Cor) dao Yoo bon Bou (vO (4) Comet hy MIPY Profiler dor profet P'S ‘a! (b) Whot iy due TRR of each preyed ? CO With Preset would yen chooie th Fre Lost of Capital Ty 10 perreet 7 Lo Percent ? A fe (?) 8 P Q D Year cf cr pyc Puce © Ctwre) —(igov) —- foo ~ lbo0 tM) rep fot? > (ber) Yoo _y9g.32 319. Bg 3 C2) bro aay uy 04 y 2000 = Bow 1441-04 bey) s Yoo (oo 2264-41 56-34 Nev 1308 = (10433 Notes.5 Dthlourt rout (4 ortumed to le 12%, > NPV te = Present vale of _ Proyerent Voter Cosh Inflow of Gah dud f lo v9 J.1©)) Prajecr f Yee ch PLE puck © (tes) tore leo Cr) aay ten 2 Choo) =Moaegy — —ytd63 SM) tye ayy se 4 2m 43301 ae Supe tyr — go FS wey 64047 (067 At 2h 45.20% * ) \, TRR> A+ 1620 6 0%-4%) War0- (-29-2/) = 9% + 15-20 1% U3S] = 9h + 023493 XT, 2 43443 Y% DU Can be peerCo) cP) (P) a >, env CF ch UCR 0 (eve) ( lev) ~ loo 1 (12) ae 109041 2 (600) ura —4aS-8? 3 (29°) foo 1883 4 UD «BoD 1366-03 5 Youo [00 WMBS64 loF5S-1] Nev > in waning NPV method Pant O, (@) oP) 4=l0Y, 4=)e/. tuce Puce (600 —loty “(BIB2 Low 330-8 4 [6-64 yso-34 —lUy-o8 Sub4) Gus) 6204 160951 14.3) L063 to evaluate co A=pDy Puck ~lbov (66-67 2978 BPD 385 Bo Yol4 aes prick tt wo puns! diet MPV of pryet f war found be go $e pesthie aol oliseounbg Aak$ t2 10% R4s20¥, whl atu of project = wer found +o be negative . D Ths, projet 3 When A= 10% ° using P mut pe choofen even wh Hf ley of capri 1% (oY, e€ 20 ¥, IRR retrod Propet “P munt be chonser hermure TRE (= 20413654) 1 PeAHr Tran Tr it of capited (= fo.) ,rolle projet 6G) Shel not bk chadfen because TER (= 43497 ¥) wo loo thon he ont af apie (=10/.)* re tot of caplet beerrnen 20%, , fy stnod care Propet ¢P) yy benefiiel seaure ZER of projet Pl a20p30ry) greater Pron’ Hus lot of capital (=o), while profet 01) net bevel bese SRR of proper 9 E934BY) wor den tran to Cod af capried . Quurhon-Y 2 Your Compareg ny tawny two pope, hojet M and Projeet N each of waits wires en) tached out 2p million, The expeed Cop Inftowh fen Tre Profeaty art Year Prefer M Pryet VV 1 FA mcllion 238 mUlrom 2 4 gh 3 ye 8 4 34 0 vohat Th TAL payback pevod cpr eat of Pu pryor 2 what 1 Th auscounted poy bak pevod er cok yf tex prot Aan wit 6f cap ited 1A 12 pacer 7 (9 Tt du two payer ans |hateperrdent aud be, os of mudva enctusive and tu cost of i ty To peated, wick pryet Pbauto Put fin frat in. 2 ww wofee fayhare Puods cf cr umulati¥e Carmulohiog Yeu om NP. (Prjeet 4) - (Project w) t " 30 NW 38 2 4 22 3p bo 3 32 19 gh Y 33 10 (nttiol Bust lay! M9 Td mild \ \ NA £9 rvtbe, 3 Fagg tbause Paiva - Projet M 30 looking et Tre Cumuclochx Gash Flown (CF) - prayed column fy ra tesle abore , # lam be found Bact Inthe out lay 4f 2 Somiltan 7h Yecoveung Mn toe rd year - Thaas 1 Pe i P80 = 2M you 4 en = d + $0-30 2 Pesverd 3% os Gan Plows Inyear, 2 24 20 33 = 2620 yor. 2 Payback Revel — Bajost 25 On Anoeing at Px Curmudation Goh Plowt (tL) Proftut column, In me day ahove, Tt Can be pound trot fartial Out ary oe @ miUin I Feoverlg In Pew ond yor: Thea, pu pep = Bryer 4 (0-38) - ISHS years m2() Drs eounteo! Posphack Pen el ¢ brofet M Yeor CF puch tumutatin PYCE ! \\ 4982 4eBL 2 9 ISG 2He9h 3 32 aw UR 4 33 arp FL 26 Nett 2 3tElly, > pucks CPx cr4aye InMted Burley 3 250 mbm 3 On lwokdy gt The Umulatinn EVCR Lolunen FH (an be count quot FSV mellisn (heed Ovtvey) mh rosveuy fac Yr yet Tay, HP PBP = 3Y4 year ¢ (S0-Y94T) 235) = 3-096 Yeard. Prvounsed fayhart Rurd £ fragt yer Ch Puce domalotio Puch ' 3h «33-97 33-93 2 2p SF 43-SD 3 1B 1442 63-43 q (0 6°26 pers 2 ger + C59 43050 ) ta-a7 2 232 sets@ Co) We whl we NEV # ZRR ty evaluak Be hoo Profted CM) goley, gene ge 2a Year CF Puck fuck as No ery BE — 2 [4 SW Iho neg rye M | 3 32 Hoy (6-26 (WeGL YB peng 13-98 [yerd Pucks For 4423 ory Hine ogo) (0) 82) outtoy a. ek N@v = 1902 — — 2 Tee = 29% + 024 (28).-23%) [wev = 25-02 | 0-24 - (0-94) [rRR = 34-240 % 1 _ 42l0y, CaBv 45 33% Year CF Puce tuck pee 1 3B pure 1g.86 ng 79 > 22 49r 6-68 6-78 t Heat N Pn et payor y to 683 3+te Bodo ZPuhe F237 — HAAG — OMT — tat Go) 80 Soda ONS yey 233 OR TAR = 33% OMS (34.33%) —— OU ~ (022) a> Vsihy NPV metaod , we mut choose propel. vw preyet NPy = 2F02 antes OM NPY 2228S oO 5 Virmy LIRR metrod, we mut Uwoie projet N. TRR prefect mM. =-20294Y, VTRKR projet Wr 33.092 ¥, <> Now, PE Can lee geen Pret PY puto 14 duggenbng projet M4, white pr ERR method h guagertty projet NV » Sy Charly Pure 14 Q tontrad! cbr bediveen Tre trvo mepro , > Tr suth a Lae MPV memool Ih genmally Preferred becsuae of hgh Betura 1) ayo ltt terms. Hence profut MM Bort pe selectest.