Академический Документы
Профессиональный Документы
Культура Документы
Rs Lacs
Glazed paper
Probability
0.20
0.30
0.30
0.20
NPV
400.00
650.00
850.00
155.00
Craft paper
Probability
NPV
0.10
250.00
0.40
500.00
0.30
750.00
0.20
250.00
Scenario Analysis
A firm is considering a capital investment of Rs
40 lacs fro a project that has life of 5 years The
cash flows are dependent upon the general
economic conditions. The project team has
considered 4 different scenarios of poor, average,
good and excellent with respective probabilities
of 20%, 30%, 30% and 20% respectively. the cash
flows fro three years under 4 different scenarios
are given below:
Rs lacs
Scenario
Prob. Year 1 Year 2
Year 3
Poor
0.20 12.00
15.00
18.00
Average
0.30 15.00
19.00
24.00
Good
0.30 20.00
25.00
35.00
Excellent 0.20 27.00
35.00
44.00
Assuming cost of capital at 12% find out the
following:
Sensitivity Analysis
Sensitive Controls Limited have a project on
hand costing Rs 20 crore with a life of 10 years
The expected revenue id Rs 21 crore per annum
with variable cost estimated at 50%. The fixed
cost are Rs 2 crore while depreciation is on the
basis of SLM. The tax rate is 40% and the cost
of capital for the firm is 14%.
Decision Tree
Child Entertainment Ltd. (CEL) are in the
business of developing fancy toys that last
normally no more than 2 - 3 years They have
come out with another fancy toy that is
expected to last for two years The capital
investment is Rs 275 lacs.
Certainty Equivalent