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"