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Soma

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58 views3 pages

Soma

Uploaded by

23b4epgp142
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Rs in cr

Problem Name TT Software purchase Intial cash flow for TT -100


Cash flows
1 ₹ 17.00
2 ₹ 19.55
3 ₹ 22.48
Name Soma Majumdar 4 ₹ 25.85
Roll No. 23b4epgp086 5 ₹ 29.73
Section B npv of the project ₹ -10.41
Question 6 (1)

npv of the project at different


growth rates
annual sales growth rate 0.1
cash flows
1 ₹ 17.00
2 ₹ 18.70
3 ₹ 20.57
4 ₹ 22.63
5 ₹ 24.89
npv of the project ₹ -18.33

npv of the project at different


project cost -100
cash flows
1 ₹ 17.00
2 ₹ 19.55
3 ₹ 22.48

4 ₹ 25.85
5 ₹ 29.73
npv ₹ -10.41

TT should not purchase the software from the ST, Only if sales g
annual sales
growth rate 0.15

cost of capital 0.08

₹ -10.41

0.1
0.2 0.3 0.2
0.3
₹ 17.00 ₹ 17.00
₹ 20.40 ₹ 22.10
₹ 24.48 ₹ 28.73
₹ 29.38 ₹ 37.35
₹ 35.25 ₹ 48.55
₹ -1.75 ₹ 17.99

₹ -10.41

-200 -300 -₹ 100.00


-₹ 200.00
-₹ 300.00

₹ -10.41 0.1 0.2 0.3


-100
₹ -110.41 ₹ -210.41 -200
-300

e from the ST, Only if sales growth rate is 30% or more , they can go with the software
npv of the project at varying
growth rates and varying project
cost

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