Ali wants to invest Rs.500,000 for 5 years in a bank. On the basis of below information by two banks, suggest him the best alternate. Show complete calculation to support your decision.
Bank Annual Interest Rate Type of Interest
Bank A 9% Simple Interest
Bank B 8.50% Compound Interest
Define credit instruments? Write a note on different types credit instruments
Briefly describe cost of equity and cost of debt.
A company is evaluating a project that costs Rs. 20,000 and has cash flows of Rs. 5,000 a year for six years. Company has 12 percent cost of capital. Calculate project’s NPV (Net Present Value) and PI (Profitability Index). Is the project feasible?
Define Variance. What does it tell regarding return?
If you plan to save Rs. 12,000 with a bank at an interest rate of 9%, what will be the worth of your amount after 4 years if interest is compounded annually?
What is Weighted Average Cost of Capital (WACC)?
What are the recommendations if policies are flexible with regard to current assets?
Bank Annual Interest Rate Type of Interest
Bank A 9% Simple Interest
Bank B 8.50% Compound Interest
Define credit instruments? Write a note on different types credit instruments
Briefly describe cost of equity and cost of debt.
A company is evaluating a project that costs Rs. 20,000 and has cash flows of Rs. 5,000 a year for six years. Company has 12 percent cost of capital. Calculate project’s NPV (Net Present Value) and PI (Profitability Index). Is the project feasible?
Define Variance. What does it tell regarding return?
If you plan to save Rs. 12,000 with a bank at an interest rate of 9%, what will be the worth of your amount after 4 years if interest is compounded annually?
What is Weighted Average Cost of Capital (WACC)?
What are the recommendations if policies are flexible with regard to current assets?
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