NMIMS – Corporate Finance
NMIMS MBA Corporate Finance Solved Assignment
1. Compute the NPV and IRR for project whose initial cost is 30,000 and cash inflows are 14000, 8200, 12000, 15000, 22000. Discount Rate is 10%. Cost of Capital if borrowed is 15%. Find the solution in the NMIMS MBA Corporate Finance Solved Assignment.
Show value of NPV at IRR as discount factor.
Based on the above calculations, should the project be considered? (10 Marks) –
2. Calculate the Cash Cycle using the following information. (Assume 360 days in a year).
| Opening Balances | |
| Raw Material | 4,00,000 |
| WIP | 80,000 |
| Finished Goods | 6,00,000 |
| Debtors | 2,50,000 |
| Creditors | 5,60,000 |
| Closing Balances | |
| Raw Material | 5,00,000 |
| WIP | 70,000 |
| Finished Goods | 7,25,000 |
| Debtors | 3,15,000 |
| Creditors | 6,25,000 |
| Costs Incurred during the year | |
| Manufacturing Costs | 10,45,000 |
| Excise Duty | 8,50,000 |
| Selling and Distribution Expenses | 4,20,000 |
| Admin. Overheads | 3,00,000 |
| Total Sales | 4,20,00,500 |
| Total Purchases | 3,23,00,000 |
30% of sales are on credit and 80% of purchases are on credit (10 Marks) –
3. a. In the following balance sheet calculate the Current Ratio and the Acid Test Ratio –
3. b. Sanghvi & Sons P.Ltd. is a private limited company with almost 80% shareholding with the Sanghvi family. It has now a requirement of Rs. 400 crores for a project to be undertaken. Currently it has a debt-equity ratio of about 1.5:1. The management of the company feels that a ratio of up to 2:1 is acceptable. Discuss whether the company should fund its requirements by Debt or Equity and various considerations for the same. –