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

Acc501 Assignment No. 2 solution

Thursday, June 16, 2011 Posted In Edit This
Virtual University Of Pakistan
ACC501 Spring Semester 2011
“Business Finance (ACC501)”
Assignment No. 2 Total Marks: 15

Question

A Volvo enterprise is considering two mutually exclusive projects “Project A” and “Project B” with an initial investment Rs. 205,000. Board of directors of Volvo has set 4 years as pay back period and required return is set at 7%. The cash inflows associated with two projects are as follows:


Keep in to consideration given information. You are required to calculate the following:

1. Calculate Payback period for each project.
2. Calculate NPV for each project.
3. Calculate PI for each project.
4. Rank the projects by each of the used techniques. Also give justification for this ranking.

NOTE:
It is necessary to show formula and complete working. Marks will be deducted if instruction will not be followed.

Assignment Schedule
Opening Date and Time
9th June, 2011 At 12:01 A.M. (Mid-Night)
Due Date and Time
15th June, 2011 At 11:59 P.M. (Mid-Night)


Solution:


In the project “A” the initial investment is Rs. 205,000 and the cash flows are Rs. 80,000, 50,000, 45,000, 450000 & 45,000 in five years.
The cash flows over 5 years are Rs. 240,000, so the project pays back sometime in the fifth year.

Year Paid back Remaining
1 60,000 145,000
2 50,000 95,000
3 40,000 55,000
4 50,000 5,000 for 5th year
5 40,000

Note that this Rs. 5,000 is 5,000/40,000 = 5/40 of the fifth year’s cash flows.
Spreading this ratio over 365 days:
5/40 x 365 = 45 days (approx)
Which means, that the payback period is just over 4 year and 1.5 months

In the project “B” the initial investment is Rs. 205,000 and the cash flows are Rs. 60,000, 50,000, 40,000, 50,000 & 40,000 in all five years.
The cash flows over 5 years are Rs. 265,000, so the project pays back sometime in the fourth year.

Year Paid back Remaining
1 80,000 125,000
2 50,000 75,000
3 45,000 30,000 to be paid in 4th year
4 45,000
5 45,000

This Rs. 30,000 is 30,000/45,000 = 2/3 of the fourth year’s cash flows.
Spreading this ratio over 12 months:
2/3 x 12 = 8 months
Which means, that the payback period is just over 3 year and 8 months



:::::::::::::::::::::::::::::::::::::::::::::::::::


Consider the following investments:
Year Long Short
0 -$250 -$250
1 100 100
2 100 200
3 100 0
4 100 0
•The payback on long is
2 + $50/100 = 2.5 years
•The payback on short is
1 + $150/200 = 1.75 years
•With a cutoff of two years, short is accepted and long is not
•Is payback period rule giving us the right decisions?
•Suppose, we require a 15% return on this kind of investment; NPV for the two investments is:
NPV (Short) =
-$250 +100/1.15 + 200/1.152 = -$11.81
NPV (Long) =
-$250 + 100 x (1 – 1/1.154)/.15 = $35.5
•We can see that the NPV of shorter term investment is negative, which would diminish the value of shareholders’ equity.
•Longer term investment increases share value
•Whenever we have mutually exclusive investments, we shouldn't rank them based on their returns
•In other words, IRR can be misleading in determining the best investment
•Instead we should look at their relative NPVs to avoid possibility of choosing incorrectly



:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

::::::::::::::::::::::::::::::


Assignemt#2
Question: 1

PBP A B

1 60000 205000 1 80,000 205000
2 50000 145000 2 50,000 125000
3 4000 95000 3 45000 75000
4 5000 55000 4
45000 30,000
5 40,000 5000

4.125%
3.66 years


(2) Calculate NPV for each project

205000 221590
- 199060 - 205000
5940 16590

A B
0.935 56100 74800
0.873 43650 43650
0.816 32640 36720
0.763 38150 34335
0.713 28520 32085
Total 199060 221590



(3) Calculate PI for each project

A B
199060 = 221590
205000 205,000

0.97102 1.08093


(4) Rank the project by each of the used techniques. Also give justification for this ranking.


B project is acceptable in all techniques.

Pay

A It has shorter payback period.
B It has positive NPV
C It has men then 1. Projects them

Mth202 Assignment 4 solution

Thursday, June 16, 2011 Posted In Edit This
Maximum Marks: 15                                                                                       
     Due Date: June 16, 2011

DON’T MISS THESE: Important instructions before attempting the solution of this assignment:
      To solve this assignment, you should have good command over 23 - 30 lectures.
  • Try to get the concepts, consolidate your concepts and ideas from these questions which you learn in the 23 to 30 lectures.
      Upload assignments properly through LMS, No Assignment will be accepted through email.
      Write your ID on the top of your solution file.
  • Don’t use colorful back grounds in your solution files.
  • Use Math Type or Equation Editor etc for mathematical symbols.
  • You should remember that if we found the solution files of some students are same then we will reward zero marks to all those students.
  • Try to make solution by yourself and protect your work from other students, otherwise you and the student who send same solution file as you will be given zero marks.
  • Also remember that you are supposed to submit your assignment in Word format any other like scan images etc will not be accepted and we will give zero marks correspond to these assignments.

Question 1;                                                                                                            Mark: 7
Prove by mathematical induction
 for all non-negative integers.

Question 2;                                                                                                          Marks: 3
Use the Euclidean algorithm to find gcd(430, 174).
           
Question 3;                                                                                                          Marks: 5
A box contains 3 red and 5 black balls; find the total number of ways such that all red balls stay together and all black balls stay together in the row.

Solution:


 


Mgt611 Assignment No. 2 solution

Thursday, June 16, 2011 Posted In Edit This
Abstract:
There are laws relating to transfer of possession of goods one is “Bailment”, it is a technical term of the Law, it involves change of possession and other is “Pledge”, it is the bailment of goods as security for payment of a debt or performance of a promise is called “pledge”. Both these concepts are similar but not identical at the same time. Please Differentiate between the Law of Bailment and Pledge?

Case Study

Scenario.01
Husnain Car leasing Services delivered an automobile to Baqir Auto Repair Ltd. for repairs, and Baqir Auto Repair, by way of a sub-bailment, placed the car with Mustafa Engineering Services to have some specific work done on the automobile. If Mustafa Engineering Services negligently damaged the automobile while it was in its possession.

Who will be liable to whom? and How? Explain Briefly.

Scenario.02
Ali has a PKR.300,000 National Savings Scheme Bond and wishes to borrow PKR.180,000 from his bank to purchase a 800 CC Mehran Car.

Is this a case of Bailment or Pledge?

Can Ali take his bond to the bank and use it as security for the loan?
If yes what can bank do in case of non-repayment?
The Requirement:
Keeping in view the above case and the abstract, you are required to write down the potentially correct answers of both Bailment & Pledge case studies given above
Sloution:
Bailment
The act of delivering goods for a special purpose is termed as bailment. The person who is delivering the goods is called a bailor while the person who receives the goods is referred top as a bailee in the contract. The goods that are transferred in this manner shall be returned to the owner upon completion of the purpose of the contract. The point to be remembered in this kind of transaction is that ownership of the goods does not get changed. In bailment, only goods are involved, and all movable items apart from property and money come under bailment. Thus it is clear that when you keep money in a bank account, it does not come under bailment.
Pledge
But, if a person keeps his gold or other valuable items in a bank locker or with a money lender in exchange for a loan, he is making a pledge to the money lender or the bank that he will return the money and get back his valuables. This is deemed as a kind of bailment and all conditions that are applicable on a bailment apply in such a case also. Bailment for security can be termed as a pledge. You are keeping your valuables with the money lender as a security against the loan and also making a pledge to pay back the money. To your pledge, the money lender agrees to keep the valuables as a security. In this special type of bailment where goods act as a security for payment of loan is called a pledge.

Eng201 GDB Solution

Thursday, June 16, 2011 Posted In Edit This
The opening date is 14 of June and will remain open till 15 June 



Topic

It is not about what you say, it is all about how you say it 
comment

Solution:

As any good public speaker knows, it is estimated that about 80% of the total meaning of what we say is communicated not through the actual words we use but through the non-verbal communication, the pauses, the inflection and the stress that we use delivering those words. I am sure you have had really boring teachers who manage to turn the most exciting topic into a struggle for survival as you battle sleep to endure a lecture. Yet at the same time I bet you have had excellent teachers or lecturers who have made a topic that you thought was going to be boring absolutely fascinating through their non-verbal communication and so on. All this shows that actually the way we speak and the methods that we use are much more important than the words themselves. This is why speechmakers practice their speeches before giving them. It is all about technique and how we say what we say.

Eco402 Assignment No. 2 solution

Thursday, June 16, 2011 Posted In Edit This
Semester spring 2011
Assignment no 02
ECO402
Total Marks: 15


Question no.1:
Suppose you are working in a mobile making firm operating in a perfectly
competitive market. Your cost of production is given by:
TC = 5000 + Q2

Where Q is the level of output and TC is total cost. The fixed cost of production is Rs.5000.

a. If the price of a mobile is Rs.7200, how many mobiles should you produce to
maximize profit?

b. What will your profit level be?
(Marks = 6 + 6)

Question no.02:
If a sales tax of Rs.50 per unit of output is placed on one firm whose product sells for Rs.500 in a competitive industry.

What will happen to price, output and profit? (Marks = 03)

Important Note:
ô€‚¾ Calculate to the point where calculation is being required. NO need to write irrelevant material or extra interpretation.

Important Tips
1. This Assignment can be best attempted from the knowledge acquired after
watching video lecture no. 16 to lecture no 29 and reading handouts as well as
recommended text book.
2. Video lectures can be downloaded for free from Online VU Lectures

Schedule
Opening Date and Time June, 09, 2011 At 12:01 A.M. (Mid-Night)
Due Date and Time June, 15, 2011 At 11:59 P.M. (Mid-Night)

Note: Only in the case of Assignment, 24 Hrs extra / grace period after the above mentioned due date is usually available to overcome uploading difficulties which may be faced by the students on last date. 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.
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

Solution:
Take derivative of to find the value of marginal cost where Q is the level of output Tc is the total cost.

Now we find the marginal cost which is 2Q and the fixed price is 5000.
Where MC=MR………..(1)
MR= price
And price is7200

MC= 2Q put the value of MC an MR in equation one
MC=MR
2Q=7200
Q=3600


b) What will your profit level be?

(Marks = 6 + 6)
Question no.02:
If a sales tax of Rs.50 per unit of output is placed on one firm whose product sells for
Rs.500 in a competitive industry.
What will happen to price, output and profit?
(Marks = 03)

The level of profit will be lower because the level of price at very high point.

Back to home VUsolutions

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

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