VUsolutions Transferred to AchiKhasi.com

From December 2011, this blog www.VUsolutions.blogspot.com is transferred to http://achikhasi.com/vu/ . So, you may visit http://achikhasi.com/vu/ for latest study related help.

Back to home VUsolutions

VUsolutions Fans Club [join us for MORE solutions]

VUsolutions on Facebook

Important & Cool Links

Islamic Books in Urdu ! Beauty Tips in Urdu ! Online VU Lectures ! Unique Wallpapers ! Cooking Recipes - Urdu ! Women Kahani Ghar ! Health Tips in Urdu ! Showbiz Hidden Stories ! News Updates Online ! Bachon Ki Duniya ! Virtual University Study ! Prep to PhD Study Help ! Girls Women Block ! AIOU Study Block ! News & Politics Block ! Mix Plate Block - Others

Mgmt611 HRM611 Online Quiz Announced

Wednesday, November 24, 2010 Posted In Edit This
On-Line Quiz (No.02) Announcement
Quiz will cover video lecture no. 01 to 20

Schedule

Opening Date and Time
November 24, 2010 At 12:01 AM (Mid-Night)

Closing Date and Time
November 26, 2010 At 11:59 PM (Mid-Night)




24 hours extra time is not available

Dear Students!

Read the following instructions carefully before attempting the Quiz.



Instructions 



l You can start attempting the quiz at any time but within given date(s) by clicking the quick link for Quiz on VU-LMS as it will become enabled within the mentioned dates. As soon as the time will be over, it will automatically be disabled and will not be available to attempt it. 

l Quiz will be based on Multiple Choice Questions (MCQs). Covering video Lecture 1 to 20. 

l Each question has a fixed time limit of 90 seconds. So you have to save your answer before 90 seconds. But due to unpredictable/unstable Internet speed, it is strongly recommended that you save your answer within 60 seconds to avoid any inconvenience. While attempting a question, keep an eye on the remaining time. 

l Attempting quiz is unidirectional. Once you have moved forward to the next question, you will not be able to go back to the previous one. Therefore before moving to the next question, make sure that you have selected the best option and saved your answer. 

l DO NOT press back button of your browser or refresh the page while attempting a question. Otherwise you will lose the chance of attempting the current question and a new question will be loaded. 

l DO NOT try to disable "Java Script" in your browser; otherwise you will not be able to attempt the quiz.

l If for any reason, you lose access to Internet (like power failure or disconnection of Internet), you will be able to attempt the quiz again but from the next question where you left in last attempt. But remember that you have to complete the quiz before expiry of the deadline.

Fin622 GDB Solution

Wednesday, November 24, 2010 Posted In Edit This

Semester "Fall 2010"
"Corporate Finance (Fin622)"
This is to inform that Graded Discussion Board (GDB)
will be opened according to the following schedule
Schedule
Opening Date and Time
November 22 , 2010 At 12:01 A.M. (Mid-Night)
Closing Date and Time
November 24 , 2010 At 11:59 P.M. (Mid-Night)
Topic/Area for Discussion
" Capital budgeting"
Note: The discussion question will be from the area/topic mentioned above. So start learning about the topic now.

_________________


Discussion Question



XYZ Company is one of the biggest manufacturing concerns of the country. Being the finance manager of XYZ Company, you have been assigned a task to evaluate three projects. The future cash flows from the three projects are summarized in given table.



Project A
Project B
Project C

Initial investment
45,000
70,000
50,000


Cash inflows

Year 1
20,000
20,000
30,000

Year 2
20,000
26,000
28,000

Year 3
20,000
30,000
35,000




Consider the discount factor to be 14% and that the company has sufficient funds to take projects.



Required:



I. On the basis of NPV approach, which project(s) you would select if the projects are independent and why?

II. On the basis of NPV approach, which project(s) you would select if the projects are mutually exclusive and why?

_________________


To find out the NPV use this calculator click this link
http://www.zenwealth.com/BusinessFinanc ... lator.html



Also watch this video clip at u tube regarding our GDB, just waste 6 minutes and find out your own GDB answer
click the link below
http://www.youtube.com/watch?v=oA8le4Fn ... re=related
_________________________________
After discounting all cash flows of projects with its opportunity coats, the net present
values of all three projects are (NPV)
Project A_NPV: +1432
Project B_NPV: -12200
Project C_NPV: +21485
1: On the basis of NPV approach, which project(s) you would select if the projects are independent and why?
ANS _1 :If the projects are independent so the projects that have +NPV should be accepted in the given scenario project A and C have positive NPV
2: On the basis of NPV approach, which project(s) you would select if the projects are mutually exclusive and why
Mutually exclusives are those projects where we have to choose only one out of different options.
If the projects are mutually exclusive the one with higher positive net present value (+NPV) should be chosen
Ans_2: So in given scenario the best project is C with the higher positive npv 21485 among three projects so rationally chose project C
Reference: Financial Management Theory and Practice 8th edition _BRIGHAM AND GAPENCSKI
Chapter #9 page #398
.............
Project A: NPV: 1432.64 Project B: NPV: -12200 Project C: NPV: 21485 On the basis of NPV approach, which project(s) you would select if the projects are independent and why? Ans: I will select project C first and after select project A on second because both have positive NPV. On the basis of NPV approach, which project(s) you would select if the projects are mutually exclusive and why? Ans In mutually exclusive I will select project C because it has positive NPV and also have larger amount 21485.
.............


Solution:
I.                    On the basis of NPV approach, which project(s) you would select if the projects are independent and why?
Ans :
First Project C will be selected and then project A will be selected as both have positive NPV.
II.                 On the basis of NPV approach, which project(s) you would select if the projects are mutually exclusive and why?
Ans :
In case of mutually exclusive, only Project C will be selected because it has positive and higher NPV value i-e 21485

Calculations:
 NPV net present value
I , initial investment = 45000
R , rate = 14% = 14/100= 0.14
t , time in years
CF = cash inflows
Project A :
I , initial investment = 45000
NPV = - I0 + CF1 / (1+r)t + CF2 / (1+r)t + CF3 / (1+r)t
         = -45000 + 20000/ (1+ 0.14) 1 + 20000 / (1+0.14) 2 + 20000/ (1+0.14)3
        = 1432.64 ( positive NPV)
Project B :
I , initial investment = 70000
NPV = - I0 + CF1 / (1+r)t + CF2 / (1+r)t + CF3 / (1+r)t
         = -70000 + 70000/ (1+ 0.14) 1 + 70000 / (1+0.14) 2 + 70000/ (1+0.14)3
        = -12200 ( negative NPV)
Project C:
I , initial investment = 50000
NPV = - I0 + CF1 / (1+r)t + CF2 / (1+r)t + CF3 / (1+r)t
         = -50000 + 50000/ (1+ 0.14) 1 + 50000 / (1+0.14) 2 + 50000/ (1+0.14)3
        = 21485 ( positive NPV)


Fin621 GDB Solution

Wednesday, November 24, 2010 Posted In Edit This

Semester "FALL 2010"
"Financial Statement analysis(FIN621)"
This is to inform that next Graded Discussion Board (GDB)
will be opened according to the following schedule
Schedule
Opening Date and Time
November 22, 2010 At 12:01 A.M. (Mid-Night)
Closing Date and Time
November 24, 2010 At 11:59 P.M. (Mid-Night)
Topic/Area for Discussion
" Accounting Principles and its Application in Financial Statements "
Note: The discussion question will be from the area/topic mentioned above. So start learning about the topic now.

_________________

"Suppose you are working as an accountant and the president of your firm Mr. Ali has a little back ground of accounting. This morning, he approached you and said:

"Last year we purchased a piece of land for Rs. 200,000. During this, the inflation has driven prices up by 12 %, and an expert has also just told me that we can sell this land for Rs. 300,000 whereas our balance sheet still shows the land at Rs. 200,000. It should be valued at Rs. 300,000 or at least at Rs. 224,000 (after the effect of 12% inflation)".

Identify accounting principle(s) (GAAP) applicable to this situation which negates Mr. Ali's Claim. "
...............
Solutions:

According to me Answer Must be
1) Going Concern
and
2) Cost Principle
................
Prudence principle: when choosing between two solutions, the one that will be least likely to overstate assets and income should be picked

Cost principle requires companies to account and report based on acquisition costs rather than fair market value for most assets and liabilities. This principle provides information that is reliable (removing opportunity to provide subjective and potentially biased market values), but not very relevant. Thus there is a trend to use fair values. Most debts and securities are now reported at market values.
...............
Just 3 concept oppose the valuation of fixed assets
+Cost principle(historical value recognition)
+Going concern assumption(fixed assets are not for resale purpose,thats y valuation doesn't matter
+The objectivity Principle(assets are valued verifying by independent expert)

These three principle are reject the purpose of revaluation in "GAAP"Remember IAS and FRAS standards promote revaluation of fixed assets,i think IAS 7,OR IAS8(Revaluation)

"Error & ommision are accepted"
...........
These are the accounting principle(s) (GAAP) applicable to this situation.


Goging Concern Assumption
An accounting guideline which allows the readers of financial statements to assume that the company will continue on long enough to carry out its objectives and commitments
Cost PrincipleThe cost principle is an accounting concept that states goods and services should be recorded at their original or historical cost. This concept is mainly used when recording short- and long-term assets and liabilities or equity investments. 
Objectivity PrincipleIt is the principle of accounting which states that the books of accounts should be prepared on the basis of verifiable data.
.............

Newer Posts
Older Posts

Back to home VUsolutions

Shaadi.com: Just create ur account & find ur partner or EARN money, its reall & EASY

Shaadi.com Matrimonials

VUsolutions Followers (Join NOW and Get Extra Benefits)

Install LATEST toolbar having lot of features - GET solutions on Desktop

toolbar powered by Conduit
Caliplus 300x250 NoFlam VitoLiv 468x60 GlucoLo