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  • IPF Exam

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    Juliet Bhandari
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    This document summarizes the financial projections for a proposed project by Zebronics. It outlines capital expenditures of Rs. 600 lakhs in year 0. Working capital is estimated at 15% of production. Production, sales, costs, taxes, depreciation and cash flows are projected for 6 years. NPV is calculated to be Rs. 6.5 lakhs using a 15% cost of capital. Payback period is 4 years. The document also summarizes capital outflows of Rs. 8 crores for a proposed project by Nilesh Fertilizers. Interest payments on a Rs. 5 crore loan at 15% are projected over 5 years as the loan is rep

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    IPF Exam (1)

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    This document summarizes the financial projections for a proposed project by Zebronics. It outlines capital expenditures of Rs. 600 lakhs in year 0. Working capital is estimated at 15% of production. Production, sales, costs, taxes, depreciation and cash flows are projected for 6 years. NPV is calculated to be Rs. 6.5 lakhs using a 15% cost of capital. Payback period is 4 years. The document also summarizes capital outflows of Rs. 8 crores for a proposed project by Nilesh Fertilizers. Interest payments on a Rs. 5 crore loan at 15% are projected over 5 years as the loan is rep

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    5 views6 pages

    IPF Exam

    Uploaded by

    Juliet Bhandari
    This document summarizes the financial projections for a proposed project by Zebronics. It outlines capital expenditures of Rs. 600 lakhs in year 0. Working capital is estimated at 15% of production. Production, sales, costs, taxes, depreciation and cash flows are projected for 6 years. NPV is calculated to be Rs. 6.5 lakhs using a 15% cost of capital. Payback period is 4 years. The document also summarizes capital outflows of Rs. 8 crores for a proposed project by Nilesh Fertilizers. Interest payments on a Rs. 5 crore loan at 15% are projected over 5 years as the loan is rep

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    (Figures in Lakhs)

    Zebronics

    Outflows
    Capex 600
    WC 15%
    Year COC PV
    0 150 1 150
    1 0 0.869565 0
    2 0 0.756144 0
    3 100 0.657516 65.75162
    215.7516
    Total Outf 815.7516

    Inflows 30% Tax 35%


    Year ProductionSp VC Contributi FC Depreciati PBT PAT CI(AT)
    1 4 200 60% 320 240 180 -100 -35 145
    2 8.04 200 60% 643.2 360 126 157.2 55.02 181.02
    3 10.8 200 60% 864 480 88.2 295.8 103.53 191.73
    4 12 200 60% 960 480 61.74 418.26 146.391 208.131
    5 12 200 60% 960 480 43.218 436.782 152.8737 196.0917
    6 12 200 60% 960 480 30.2526 449.7474 157.4116 187.6642

    Depreciation Calculation
    Year Op Bal Depreciati Closing Balance
    30%
    1 600 180 420
    2 420 126 294
    3 294 88.2 205.8
    4 205.8 61.74 144.06
    5 144.06 43.218 100.842
    6 100.842 30.2526 70.5894
    529.4106

    Calculation of Salvage Value


    Working Ca 100% 250
    Fixed Asset 10% 60
    Loss 10.5894
    Tax Benefit on Loss 3.70629
    Total 313.7063
    PV of Salva 135.6239
    NPV
    Total Inflow 822.2778
    Total Outflow 815.7516
    NPV 6.526147
    15%
    COC PV
    0.869565 126.087
    0.756144 136.8771
    0.657516 126.0656
    0.571753 118.9996
    0.497177 97.49223
    0.432328 81.13241
    686.6539
    Project A Project B Project C
    Initial Investment 200000 200000 200000

    Inflows Required R 10%


    Year DF Cashflows PV of A PV of B
    0 -200000 -200000 -200000
    1 0.909091 50000 45454.55 80000 72727.27 100000
    2 0.826446 50000 41322.31 80000 66115.7 100000
    3 0.751315 50000 37565.74 80000 60105.18 10000
    4 0.683013 50000 34150.67 30000 20490.4
    5 0.620921 190000 117975.1 0
    Total 390000 276468.3 270000 219438.6 210000

    PBP 4 2+ 6 2
    Years Years Months Years

    NPV
    PVCI-PVCO 76468.32 19438.56 -18933.13

    IRR 21.05% 14.95% 3.16%

    Profitablity Index
    PVCI/PVCO 1.382342 1.097193 0.905334

    PI when IRR is 15%


    PV of C

    90909.09
    82644.63
    7513.148
    0
    0
    181066.9
    Nilesh Fertilizer

    Capital Outflow
    8000000

    Inflows
    Year
    1 2000000
    2 2000000
    3 2000000
    4 2000000
    5 2000000
    6 2000000

    Interest Calculation
    Loan Amount 500000
    Rate of Interest 15%
    OutstandinInterest RepaymentBalance
    1 5000000 750000 1000000 4000000
    2 4000000 600000 1000000 3000000
    3 3000000 450000 1000000 2000000
    4 2000000 300000 1000000 1000000
    5 1000000 150000 1000000 0

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