SEMESTER FALL 2014
FINANCIAL MANAGEMENT (MGT201)

ASSIGNMENT NO. 01

Suppose; the top management of a famous hotel chain is planning to construct a new hotel
on Murree Express Way adjoining Muree. This project requires an initial investment of Rs.
30,125,700; while the proposed income from this project is Rs. 8,400,000, Rs. 8,400,500,
Rs. 8,500,000 and Rs. 8,65,4000 annually for next four years. The required rate of return for
this project is 19%. The company hires you as its financial analyst and requires you to do
the following:
1. Evaluate the project feasibility through using Net Present Value technique. (4 marks)
2. Evaluate the project feasibility through applying Profitability Index (PI) technique. (4
marks)
3. Based on both calculations, interpret and suggest whether the XYZ Construction
Company should invest in this project? (2 marks)

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plz koi help karo

ab koi solve be to karde na

ye lo solution phr  :)  Question no2 dkh lena

plz help me?

Zain Kazami agr solution dena he hota hy to zror exe file mein dena hota hy...???? aise help krny ka kiya faida...jo exe file open he na ho... is se to acha hy ap solution diya he na kro

Mayra bhi yahe Ans aa raha ha same sulation ha

Es may Requrement No 2 ha us ki bhi full working krne ha ya aasay he krna ha jase ap nay kiya ha ??

Solution:-

Question # 01:-

 

Net Present Value (NPV) technique

            NPV = -Initial Value + C1 + C2 + C3 + C4+...

NPV = -Io + CF1/(1+i) + CF2/(1+i) 2 + CF3 /(1+i) 3 + CF4 /(1+i) 4....

NPV = -30125700  +   8400000 + 8400500 8500000 + 8654000 + …

(1+.19)1       (1.19)2        (1.19)3        (1.19)4

NPV = -30125700  +  8,400,000  +  8,400,500 8,500,000 8,654,000

 1.19000          1.41610         1.68516          2.00534

NPV = - 30125700 + 7058823.529 + 5932137.560 + 5044031.427 + 4315477.674

NPV = - 30125700 +  22350470.19

NPV = -7,775,229.81

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