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  • FS&I Class 6 FEB 2023

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    Sanskar saxena
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    The document contains calculations for different loan and investment options: 1) Option 1 involves taking a loan of Rs. 40,000 at 11% interest over 6 years with a salvage value of Rs. 3,000. It shows the annual cash outflows, tax shield benefits, EMI payments, and principal repayment. 2) Option 2 involves an upfront payment of Rs. 249,992 with no loan. It provides the net cash outflow and present value of the salvage amount. 3) Option 3 involves an upfront payment of Rs. 374,989 with no additional details provided.

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    The document contains calculations for different loan and investment options: 1) Option 1 involves taking a loan of Rs. 40,000 at 11% interest over 6 years with a salvage value of Rs. 3,000. It shows the annual cash outflows, tax shield benefits, EMI payments, and principal repayment. 2) Option 2 involves an upfront payment of Rs. 249,992 with no loan. It provides the net cash outflow and present value of the salvage amount. 3) Option 3 involves an upfront payment of Rs. 374,989 with no additional details provided.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    4 views3 pages

    FS&I Class 6 FEB 2023

    Uploaded by

    Sanskar saxena
    The document contains calculations for different loan and investment options: 1) Option 1 involves taking a loan of Rs. 40,000 at 11% interest over 6 years with a salvage value of Rs. 3,000. It shows the annual cash outflows, tax shield benefits, EMI payments, and principal repayment. 2) Option 2 involves an upfront payment of Rs. 249,992 with no loan. It provides the net cash outflow and present value of the salvage amount. 3) Option 3 involves an upfront payment of Rs. 374,989 with no additional details provided.

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    of 3

    Lesser POV

    PURCHASE 40000
    INT 11
    YEAR 6
    SALVAGE V 3000
    EMI & INTEREST
    EMI ₹ -111,192

    Net Cash outflow Tax shield Dep + I Dep Principle EMI


    ₹ -40,932 70260 117100 80000 530000 ₹ -111,192
    ₹ -44,044 67148 111914 80000 ₹ 455,908.23 ₹ -111,192
    ₹ -47,373 63818 106364 80000 ₹ 376,630.03 ₹ -111,192
    ₹ -50,936 60256 100426 80000 ₹ 291,802.36 ₹ -111,192
    ₹ -54,748 56444 94073 80000 ₹ 201,036.75 ₹ -111,192
    ₹ -58,827 52365 87274 80000 ₹ 103,917.55 ₹ -111,192

    OPTION 1 OPTION 2 ₹ -249,992


    29688
    Y0 530000 ₹ -220,304
    Y1 80000
    Y2 80000
    Y3 80000
    Y4 80000
    Y5 80000
    Y6 80000
    SV 38000
    CAP GAIN 12000
    PV OF SV 29688
    LOAN - PV OF SV ₹ -225,767
    EMI & INTEREST

    Interest Principle repaid Rem Principle PV


    37100 ₹ -74,091.77 ₹ 455,908.23 ₹ -39,282
    31913.575828966 ₹ -79,278.20 ₹ 376,630.03 ₹ -40,565
    26364.10196596 ₹ -84,827.67 ₹ 291,802.36 ₹ -41,873
    20426.164932543 ₹ -90,765.61 ₹ 201,036.75 ₹ -43,207
    14072.572306787 ₹ -97,119.20 ₹ 103,917.55 ₹ -44,569
    7274.228197228 ₹ -103,917.55 ₹ 0.00 ₹ -45,959
    137150.64323148 ₹ -255,454

    OPTION 3

    ₹ -374,989

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