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Commerce Student

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Submitted By AishaIftikharR
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Answer No: 1 Detail | year | C.F | Acc C.F | C.O.C At 10% | C.F at 10% | Acc. C.F at 10% | Common name | a | b | c | D | e = b×d | f | | 0 | $-100,000 | _ | _ | _ | _ | | 1 | 35027 | 35027 | 0.909 | 31840 | 31840 | | 2 | 35027 | 70054 | 0.826 | 28932 | 60772 | | 3 | 35027 | 105081 | 0.751 | 26305 | 87077 | | 4 | 35027 | 140108 | 0.683 | 23924 | 111001 |

C.O.C At 16% | C.F at 16% | Acc. C.F at 16% | 0 % | 10 % | g | h = b×g | i | | | _ | _ | _ | _ | _ | 0.862 | 30193 | 30193 | 35027(1+0%) 1= 35027 | 35027(1+10%) 1= 38529.7 | 0.743 | 26025 | 56218 | 35027(1+0%) 2= 35027 | 35027(1+10%) 2= 42382.67 | 0.641 | 22452 | 78670 | 35027(1+0%) 3= 35027 | 35027(1+10%) 3= 46620.937 | 0.552 | 19335 | 98005 | 35027(1+0%) 4= 35027 | 35027(1+10%) 4= 51283.03 | | | | ∑=140108 | ∑=178816.337 |

a) Payback period = 3 year b) Didcounted payback period at 10%=4 year c) Didcounted payback period at 16%=May be 5th year d) NPV at 10% = 111001-100,000= 11001 e) NPV at 16% =98005-100,000= -1995 loss f) Profitability index at 10 % =111001100,000 = 1.11001 g) Profitability index at 16 % = 98005100,000 = 0.90005

h) IRR- 10% 10 %__________111001 -11001

IRR ____________ 100,000 6% 16 % ____________ 98005 -12986

IRR-10% 6% = -11001-12986
IRR-10%=5%
IRR= 5% +10% IRR= 15% i) MIRR At 0 % F.V = P.V (1+MIRR)n 140108 = 100,000(1+MIRR)4 4140108100,000 = 4(1+MIRR)4 1.087 = 1+MIRR 1.087-1 = MIRR MIRR = 0.087 or 8.7% MIRR At 10 % F.V = P.V (1+MIRR)n 178816.337 = 100,000(1+MIRR)4

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