Ipazo1 ‘ ‘The cost of capital of the company is 10%. Calculate the Net present value of the projects, Payback Period and Internal rate of return, (29) [No, of Printed Pages — 4) FIBA201 Enrol, No, [BNCF} END SEMESTER EXAMINATION: APR-MAY, 2017 FUNDAMENTALS OF FINANCIAL ‘MANAGEMENT Time: 3 Hrs Maximum Marks 70 Note: Auemps questions from all sections as directed. Kindly provide Present Value and Future Value Time Value of Money tables. SECTION ~ A G0 Marks) Attempt any five questions out of Each question carries 06 marks. 1, (@) Finance is interrelated to other areas of management, Explain ° () Explain EBIT-EPS analysis, ° 2, Caleulate the present value of Rs, 25,00,000 and Rs, 30,00,000 receivable at the end of 1 year and 2 year respectively atthe effective rate of interest of 12% pa Pro. 29)FIBA201 2 3 Describe the factors affecting cash management of any firm. Explain the factors a Weighted average cost of capi What is the difference between common size analysis and time series analysis? Mlustate with an example Define operating leverage How can you met the degre of operating leverage ? State importance. SECTION - B Auempt any two questions out of thee. Each question carries 10 mark. (20 Marks) Explain various short term sources of finance for & firm, A company borrows Rs. §,00,000 at an interest rate of 10%, The loan is to be repaid in equal annual installments payable at the end of each of re the loan amortization 9) FIBA201 3 10. From the following information, calculate (a) Eeonomic Order Quantity (b) for BOQ the numberof orders per year, ‘The number of units required is 30,000 per year The carrying cost per unit of inventory are Rs. 10 The fixed Costs per order are Re.20 The Variable Costs per wnit ordered are RE? The purchase cost price per unit is Re.30 SECTION - ¢ (20 Marks) (Compulsory) A choice is to be made between two competing investment proposals which require an equsl in investment outlay of Rs. 70,000 and are expected to acnerate cash inflows as under Year | (rojet A(R) | Proce B Os) 1 10,000 30,000 2 20,000 40,000 a 30,000 20,000 4 45,000 10,000 3 60,000 10,000 PTO. (29)