-
Current assets are less than current liabilities when: ACC501
Decisions about “how to raise money” and “what to do with it” are part of which of the following? ACC501
Finance is NOT essential for: ACC501
Horizon Corporation paid Rs. 5.0 Million as dividend to its shareholders in the previous financial year. This transaction will be reported on the cash flow statement as a (an): ACC501
In corporate form of business, which of the following is the primary objective of shareholders? ACC501
The most common application of term “Finance” involves raising money to acquire_________. ACC501
Which of the following has “Limited liability” for business debts? ACC501
-
SEMESTER FALL 2019
BUSINESS FINANCE (ACC501)
Period Project A (Rs.) Project B (Rs.) 0 -42,000 -42,000 1 25,000 15,000 2 21,000 17,000 3 15,000 23,000 4 11,000 27,000
ASSIGNMENT NO. 01
DUE DATE: JANUARY 27, 2020 MARKS: 20
LEARNING OBJECTIVES:
After attempting this assignment, the students will be able to:
Evaluate any proposed project by using different capital budgeting techniques.
Understand the difference between NPV and IRR.
Derive inferences regarding the acceptance/rejections of the project.
ASSIGNMENT:
Alfa Corporation has identified the following two mutually exclusive projects. The CFO of the company wants to evaluate the identified projects. For this purpose he asked Mr. Naveed to evaluate those projects and establish their feasibility with the help of different capital budgeting techniques. Following are the details of the two mutually exclusive projects.As per the company policy, Mr. Naveed decided to evaluate both projects with the help of IRR and NPV techniques of capital budgeting.
IMPORTANT INSTRUCTIONS:
Requirements:
I. What is the IRR for each of these projects? Which project company should accept according to IRR rule? (13 Marks)
II. What is the NPV for each of these projects? If the required rate of return is 12 percent. Which project company should accept according to NPV rule? (5 Marks)
III. If the decision on the basis of NPV is different than that of IRR, which particular criteria company should prefer and why? (2 Marks) Complete calculations are required for every part of the problem. Incomplete calculations will result in loss of marks.
Discount factors and resulting figures should not be rounded up more than four decimal digits.
IMPORTANT:
24 hours extra / grace period after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.
OTHER IMPORTANT INSTRUCTIONS:
DEADLINE:
Make sure to upload the solution file before the due date on VULMS.
Any submission made via email after the due date will not be accepted.
FORMATTING GUIDELINES:
Use the font style “Times New Roman” or “Arial” and font size “12”.
It is advised to compose your document in MS-Word format.
You may also compose your assignment in Open Office format.
Use black and blue font colors only.
RULES FOR MARKING
Please note that your assignment will not be graded or graded as Zero (0), if:
It is submitted after the due date.
The file you uploaded does not open or is corrupt.
It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint,
PDF etc.
It is cheated or copied from other students, internet, books, journals etc.
Note related to load shedding: Please be proactive
Dear students!
As you know that Post Mid-Term semester activities have started and load shedding problem is also prevailing in our country. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs. -
Please share your current Quiz. 3
UNSOLVED ACC501 Quiz 3 Solution and Discussion
-
Please share your current Quiz. 3
-
If you have Rs. 30 in asset A and Rs. 120 in another asset B, the weights for assets A and B will be ____ and ____ respectively.
-
What will happen to cash cycle if payable period is lengthened ?
-
A firm’s capital structure may include which of the following ?
-
Business risk depends on which of the following risk of the firm’s assets ?
-
Which of the following is the time period between the acquisition of inventory and the collection of cash from receivables ?
Operating Cycle Cash Cycle Current Cycle None of the given options -
Which of the following is the time between receipt of inventory and payment for it ?
-
Operating Cycle
-
Cash Cycle
-
Current Cycle
-
None of the given options
-
-
To maintain a high ratio of current assets to sales
To maintain a low ratio of current assets to sales<
To less short-term debt and more long-term debt
To more short-term debt and less long-term debt -
Which of the following forecasts the cash inflows and outflows over the next short-term planning period ?
-
This post is deleted! -
Which of the following strategy belongs to restrictive policy regarding size of investments in current assets ?
-
Which of the following is the difference between the current assets and the current liabilities ?
50% Off on Your FEE Join US!
If you want to know how you can join us and get 50% Discout on your FEE ask Cyberian in Chat Room!
