Task 1.

The company is going to implement a real investment project in the form of new
construction and considering two options for this implementation:
o option 1;
o option 2.
The chart below shows incremental operating income and expenses generated by the
project within two options, as well as the estimated cost of construction.
thousand roubles.
Indicator Option 1 Option 2
Estimated construction cost (15,000) (15,000)
operating income 11 000 12 000
operating expenses (7,000) (7 500)

Determine the ROI and PP values for the two implementations.

*Investor expectations: ROI not less than 15%, PP not more than 3 years

Task 2.
The company is going to expand its product line and launch the production of a new type
of product. The real investment project of the company involves the purchase and installation of
new equipment; purchase of raw materials, semi-finished products and containers; additional
general business expenses included in the cost price.
The costs estimated are shown below:
 equipment 23,000 thousand rubles.
 installation 120 thousand rubles.
 raw materials 1,000 thousand rubles.
 semi-finished products 800 thousand rubles.
 container and packaging 200 thousand rubles.
 general business expenses associated with the launch of the project 100 thousand
rubles.

The operating cash flow of the investment project will amount to 9 million rubles.
annually, at the end of the fifth year of functioning, the equipment will be sold at residual value,
depreciation is accrued on a straight-line basis, the useful life is 10 years.

Financing of the project is possible either through a bank loan at a rate of 10%, or
through the funds of private investors. Investors consider this project as an alternative to the
formation of a portfolio of securities: preferred shares at a price of 56 rubles. with a dividend of
6 rubles. and bonds with a coupon of 12%, a face value of 500 rubles, a market price of 94% and
a maturity of 2 years - in equal shares . For the remaining three years, the portfolio's return will
be maintained at the calculated level by updating the structure.

Consider a planning horizon of 5 years and make a conclusion about the effectiveness of
each of the options for financing an investment project using the NPV indicator .
 Task 3.
The company is going to modernize its production facilities. The real investment project
of the company involves the purchase and installation of new equipment; repair of existing
infrastructure; construction and installation and commissioning works.
The cost estimate is shown below:
 equipment 30,000 thousand rubles.
 installation 210 thousand rubles.
 repair 9,000 thousand rubles.
 commissioning works 1,800 thousand rubles.
 general business expenses associated with the launch of the project 500 thousand
rubles.

Investment cash flows are distributed over 3 periods (including period zero – Initial
investments) in a ratio of 3:1:1
The operating cash flow of the investment project will amount to 11 million rubles.
annually, the liquidation phase of the investment project in the considered planning horizon is
not provided.

In order to finance the project, the company plans to attract the following sources:
 with a specific weight of 0.4 - a bank loan (rate 9%);
 with a specific weight of 0.35 - issuance of bonds (with a coupon of 10%, a face
value of 1500 rubles, a market price of 90% and a maturity of 5 years);
 with a specific weight of 0.25 - an additional issue of shares (beta coefficient 0.67;
market risk premium 6%, risk-free rate 8%).

Consider a planning horizon of 5 years and draw a conclusion about the effectiveness of
the investment project using the DPP indicator .