FINANCIAL MANAG

Car purchase Corolla Altis Innova Crysta XUV 700

Car On road price ₹ 2,348,170 ₹ 2,402,446 ₹ 2,612,397
Down payment of car ₹ 234,817 ₹ 240,244 ₹ 261,230
Rate of interest BOB 8.50% 8.50% 8.50%
Time period 5 5 5
Emi ₹ -43,359 ₹ -44,360.89 ₹ -48,237.79
Car loan amount ₹ 2,113,353 ₹ 2,162,202 ₹ 2,351,167

Investment 2022-2027 2023-2028 2028-2033

Rate 20% 20% 20%
Downpayment of car ₹ 234,817 ₹ 240,244 ₹ 261,230
Downpayment invested ₹ 584,300 ₹ 597,804 ₹ 650,024
Invest EMI's ₹ -4,412,101 ₹ -4,514,084 ₹ -4,908,591

Total wealth at the end ₹ -4,996,401 ₹ -5,111,888 ₹ -5,558,615

Buy car ₹ 1,200,000 1250000 1600000

Wealth left after buying car ₹ -3,796,401 ₹ -3,861,888 ₹ -3,958,615
Invest balance for 5 years
Wealth ₹ -9,446,660 ₹ -9,609,613 ₹ -9,850,301
₹ 587,043 ₹ 600,612 ₹ 653,099
Total ₹ 10,033,702 ₹ 10,210,225 ₹ 10,503,400

Operating cost of a car per km

Factor affecting the operating cost

Price of fuel
Service maintain of car
Usage of car
Variation of Car insurance price
Bank Rates variation to pay off EMI
Depriciation
Parking cost

cahsflow statement by npv and irr

SALES 1000 TOTAL CASH LEFT 1000
COGS -500 CASH PYMNT -500
DEP -300 NON CASH -80
PBT 200 LEFT 420
TAX @40% -80
PAT 120

MARUTI'S PBDIT
NI 37663
DEP 27865
TAX 8160
INT 1259
PBIDT 74947

Cash flow is of two types

free cash flow for firm FCFF IT IS FOR DEBT OWNERS AND EQUITY OWNERS
free cash flow for equity FCFE

FORMULAE
BEFORE TAX COST OF DEBT CALCULATED IS 10%
AFTER TAX COD (1-t)% where t is 40%

EARNING PER SHARE profit /no of shares

eg. SALES
(COGS) LEVERED UNLEVERED
PBIT 50
(INT) 100 50
PBT
(TAX)
PAT
50 50
20 20
30 30
3 5
30 25
12 10
18 15
0.18 0.3
CIAL MANAGEMENT CLASS
Safari XZA+ Jeep Compass Tucson 4WD MG Gloster STR
₹ 2,725,058 ₹ 3,126,253 ₹ 3,439,000 ₹ 3,844,800
₹ 272,505 ₹ 312,625 ₹ 343,900 ₹ 384,480
8.50% 8.50% 8.50% 8.50%
5 5 5 5
₹ -50,317.88 ₹ -57,725.89 ₹ -63,500.72 ₹ -70,993.76
₹ 2,452,553 ₹ 2,813,628 ₹ 3,095,100 ₹ 3,460,320

2033-2038 2038-2043 2043-2048 2048-2053

20% 20% 20% 20%
₹ 272,505 ₹ 312,625 ₹ 343,900 ₹ 384,480
₹ 678,080 ₹ 777,911 ₹ 855,733 ₹ 956,709
₹ -5,120,257 ₹ -5,874,083 ₹ -6,461,719 ₹ -7,224,198

₹ -5,798,337 ₹ -6,651,994 ₹ -7,317,452 ₹ -8,180,907

1800000 2000000 2200000 2400000

₹ -3,998,337 ₹ -4,651,994 ₹ -5,117,452 ₹ -5,780,907

₹ -9,949,142 ₹ -11,575,649 ₹ -12,733,859 ₹ -14,384,748

₹ 681,265 ₹ 781,563 ₹ 961,200
₹ 10,630,406 ₹ 12,357,213 ₹ 12,733,859 ₹ 15,345,948
 THEN DISCOUNTING RATE IS WACC
THEN DISCOUNTING RATE IS COST OF EQUITY

in cr.
DEBT
EQUITY

int 10%

sales
cogs
PBIT
INT 10%
PBT
TAX 40%
PAT
EPS
 Audi Q8
₹ 12,018,650 Car price 2348170
₹ 1,201,865 loan amount 2348170
8.50% time period 5
5 interest 10%
₹ -221,922.91
₹ 10,816,785
total amount Err:509

2053-2058
20%
₹ 1,201,865
₹ 2,990,625
₹ -22,582,478

₹ -25,573,102

6600000
₹ -18,973,102

₹ -47,211,150
₹ 3,004,663
₹ 50,215,812