7/24/2019 176650-1270-09CE358_A2

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Reg. No. ________

Karunya University(Karunya Institute of Technology and Sciences)

(Declared as Deemed to be University under Sec.3 of the UGC Act, 19!"

M.B.. Tri!ester "#a!ination $ %anuary &'

Su*ect Title + ,R-%"T /-RMU0TI-N N1 ,,RIS0 Ti!e + 2 hours

Su*ect ode+ '3"245 Ma#i!u! Mar6s+ ''

ns7er 00 8uestions (4 # &' 9 '' Mar6s)

1. o!:ulsory#

A $td com%any is considerin& to invest in a %ro'ect reuirin& a ca%ital outlay of ` ),**,***.

+orecast for annual income after de%reciation but before ta is as follo-s.

ear `

1 1**,***

) 1**,***

3 /*,***

0 /*,*** 0*,***

De%reciation may be taen as )*2 on ori&inal cost and taation at *2of net income.

ou are reuired to evaluate the %ro'ect accordin& to each of the follo-in& methods.a. ay4bac method.

b. Discounted cash flo- method tain& cost of ca%ital as 1*2

c. 5et %resent value inde method.

d. 6nternal rate of return method.

). Describe the ey issues you -ould eamine in a %reliminary screenin& eercise.

(78"

3. %lain the as%ects considered in technical analysis.

0. Describe the com%onents of the cash flo- stream of a %ro'ect.(78"

. :o- -ould you measure the cost of debt ca%ital and cost of %reference ca%ital; 6llustrate -ith

your o-n eam%le.

!. Describe the various means of finance.

(78"