FV,PV,ANNUITY PAYMENTFuture ValuePresent ValueThrough FormulaRateNo. of PeriodsPv500,000Fv1,260,261.88Pv500,000.00Pv500,000.00Rate12.25%Rate12.25%Fv1,260,261.88Rate12.25%Nper8.00Nper8Nper8Fv1,260,261.88

Fv1,260,261.88Pv500,000.00Rate12.25%Nper82.1

Car FinancingCar List Price 1,500,000Down Payment400,000Cumulative Principal-110632.816326185Loan Amount1,100,000No. Of years5Rate 17.50%Annuity Payment Formula.= r (pv) / 1 - (1+r)^-nNo. Of periods60Monthly Installment27,634

FormulaMannualPMTPPMTIPMTMonthsOpening Balance Installment PrincipalInterestClosing BalanceExtra PaymentMonthsOpening Balance Installment PrincipalInterestClosing BalanceExtra Payment11,100,00027,634.4411,592.7716,041.671,088,407.2311,100,000.0027,634.4411,592.7716,041.671,088,407.2321,088,407.2327,634.4411,761.8315,872.611,076,645.4021,088,407.2327,634.4411,761.8315,872.611,076,645.4031,076,645.4027,634.4411,933.3615,701.081,064,712.0531,076,645.4027,634.4411,933.3615,701.081,064,712.0541,064,712.0527,634.4412,107.3815,527.051,052,604.6641,064,712.0527,634.4412,107.3815,527.051,052,604.6651,052,604.6627,634.4412,283.9515,350.481,040,320.7151,052,604.6627,634.4412,283.9515,350.481,040,320.7161,040,320.7127,634.4412,463.0915,171.341,027,857.6261,040,320.7127,634.4412,463.0915,171.341,027,857.6271,027,857.6227,634.4412,644.8414,989.591,015,212.7771,027,857.6227,634.4412,644.8414,989.591,015,212.7781,015,212.7727,634.4412,829.2514,805.191,002,383.5381,015,212.7727,634.4412,829.2514,805.191,002,383.5391,002,383.5327,634.4413,016.3414,618.09689,367.18300,00091,002,383.5327,634.4413,016.3414,618.09689,367.1830000010689,367.1827,634.4417,581.1610,053.27671,786.0210689,367.1827,634.4417,581.1610,053.27671,786.0211671,786.0227,634.4417,837.569,796.88653,948.4611671,786.0227,634.4417,837.569,796.88653,948.4612653,948.4627,634.4418,097.699,536.75635,850.7812653,948.4627,634.4418,097.699,536.75635,850.7813635,850.7827,634.4418,361.619,272.82617,489.1713635,850.7827,634.4418,361.619,272.82617,489.1714617,489.1727,634.4418,629.389,005.05598,859.7814617,489.1727,634.4418,629.389,005.05598,859.7815598,859.7827,634.4418,901.068,733.37579,958.7215598,859.7827,634.4418,901.068,733.37579,958.7216579,958.7227,634.4419,176.708,457.73560,782.0116579,958.7227,634.4419,176.708,457.73560,782.0117560,782.0127,634.4419,456.368,178.07541,325.6517560,782.0127,634.4419,456.368,178.07541,325.6518541,325.6527,634.4419,740.107,894.33521,585.5518541,325.6527,634.4419,740.107,894.33521,585.5519521,585.5527,634.4420,027.987,606.46501,557.5719521,585.5527,634.4420,027.987,606.46501,557.5720501,557.5727,634.4420,320.057,314.38481,237.5120501,557.5727,634.4420,320.057,314.38481,237.5121481,237.5127,634.4420,616.397,018.05460,621.1321481,237.5127,634.4420,616.397,018.05460,621.1322460,621.1327,634.4420,917.046,717.39439,704.0822460,621.1327,634.4420,917.046,717.39439,704.0823439,704.0827,634.4421,222.086,412.35418,482.0023439,704.0827,634.4421,222.086,412.35418,482.0024418,482.0027,634.4421,531.576,102.86396,950.4324418,482.0027,634.4421,531.576,102.86396,950.4325396,950.4327,634.4421,845.575,788.86375,104.8525396,950.4327,634.4421,845.575,788.86375,104.8526375,104.8527,634.4422,164.165,470.28352,940.7026375,104.8527,634.4422,164.165,470.28352,940.7027352,940.7027,634.4422,487.385,147.05330,453.3127352,940.7027,634.4422,487.385,147.05330,453.3128330,453.3127,634.4422,815.324,819.11307,637.9928330,453.3127,634.4422,815.324,819.11307,637.9929307,637.9927,634.4423,148.054,486.39284,489.9429307,637.9927,634.4423,148.054,486.39284,489.9430284,489.9427,634.4423,485.624,148.81261,004.3230284,489.9427,634.4423,485.624,148.81261,004.3231261,004.3227,634.4423,828.123,806.31237,176.1931261,004.3227,634.4423,828.123,806.31237,176.1932237,176.1927,634.4424,175.623,458.82213,000.5832237,176.1927,634.4424,175.623,458.82213,000.5833213,000.5827,634.4424,528.183,106.26188,472.4033213,000.5827,634.4424,528.183,106.26188,472.4034188,472.4027,634.4424,885.882,748.56163,586.5234188,472.4027,634.4424,885.882,748.56163,586.5235163,586.5227,634.4425,248.802,385.64138,337.7335163,586.5227,634.4425,248.802,385.64138,337.7336138,337.7327,634.4425,617.012,017.43112,720.7236138,337.7327,634.4425,617.012,017.43112,720.7237112,720.7227,634.4425,990.591,643.8486,730.1237112,720.7227,634.4425,990.591,643.8486,730.123886,730.1227,634.4426,369.621,264.8160,360.503886,730.1227,634.4426,369.621,264.8160,360.503960,360.5027,634.4426,754.18880.2633,606.333960,360.5027,634.4426,754.18880.2633,606.334033,606.3327,634.4427,144.34490.096,461.984033,606.3327,634.4427,144.34490.096,461.98416,461.9827,634.4427,540.2094.24-21,078.22416,461.9827,634.4427,540.2094.24-21,078.2242-21,078.2227,634.4427,941.83-307.39-49,020.0442-21,078.2227,634.4427,941.83-307.39-49,020.0443-49,020.0427,634.4428,349.31-714.88-77,369.3543-49,020.0427,634.4428,349.31-714.88-77,369.3544-77,369.3527,634.4428,762.74-1,128.30-106,132.0944-77,369.3527,634.4428,762.74-1,128.30-106,132.0945-106,132.0927,634.4429,182.19-1,547.76-135,314.2845-106,132.0927,634.4429,182.19-1,547.76-135,314.2846-135,314.2827,634.4429,607.77-1,973.33-164,922.0546-135,314.2827,634.4429,607.77-1,973.33-164,922.0547-164,922.0527,634.4430,039.55-2,405.11-194,961.6047-164,922.0527,634.4430,039.55-2,405.11-194,961.6048-194,961.6027,634.4430,477.63-2,843.19-225,439.2348-194,961.6027,634.4430,477.63-2,843.19-225,439.2349-225,439.2327,634.4430,922.09-3,287.66-256,361.3249-225,439.2327,634.4430,922.09-3,287.66-256,361.3250-256,361.3227,634.4431,373.04-3,738.60-287,734.3550-256,361.3227,634.4431,373.04-3,738.60-287,734.3551-287,734.3527,634.4431,830.56-4,196.13-319,564.9251-287,734.3527,634.4431,830.56-4,196.13-319,564.9252-319,564.9227,634.4432,294.76-4,660.32-351,859.6752-319,564.9227,634.4432,294.76-4,660.32-351,859.6753-351,859.6727,634.4432,765.72-5,131.29-384,625.3953-351,859.6727,634.4432,765.72-5,131.29-384,625.3954-384,625.3927,634.4433,243.56-5,609.12-417,868.9554-384,625.3927,634.4433,243.56-5,609.12-417,868.9555-417,868.9527,634.4433,728.36-6,093.92-451,597.3155-417,868.9527,634.4433,728.36-6,093.92-451,597.3156-451,597.3127,634.4434,220.23-6,585.79-485,817.5456-451,597.3127,634.4434,220.23-6,585.79-485,817.5457-485,817.5427,634.4434,719.27-7,084.84-520,536.8157-485,817.5427,634.4434,719.27-7,084.84-520,536.8158-520,536.8127,634.4435,225.60-7,591.16-555,762.4158-520,536.8127,634.4435,225.60-7,591.16-555,762.4159-555,762.4127,634.4435,739.30-8,104.87-591,501.7159-555,762.4127,634.4435,739.30-8,104.87-591,501.7160-591,501.7127,634.4436,260.50-8,626.07-627,762.2160-591,501.7127,634.4436,260.50-8,626.07-627,762.21

Payback PeriodPractice QuestionsCase1Case 1Discounted Payback PeriodInitial Investment7000Initial Investment15000Initial Investment 15000annual cashflow2650Annual Cashflows3000Discount Rate10.50%Target Payback Period6

payback period2.64yearsPayback Period5YearsYearsCashflowsPV Of CashflowsCuml Discounted Cashflows145004,072.404,072.40232502,661.706,734.105.48Case25.45325001,852.918,587.00Initial Investment8000Case 2415501,039.649,626.64560003,642.0013,268.64yearsannual cashflowcumm. CashflowInitial Investment 20000690004,943.8918,212.53118001800725001,242.8119,455.3422000380081000449.8919,905.22322006000YearsCashflowsCummulative Cashflows42600860014500400052100107002325072505.7months6150012200325009750Discounted Payback Period5.00years41550113005600017300Target Payback Period6years6900026300payback period3years9.23months72500288008100029800Decision RuleACCEPTEDtarget payback period4yearsPayBack Period5Years5.4MonthsdecisionRecommendedTarget Payback Period5YearsMonthsDecision RuleNot Recommended

Depriciation

Depriciation TableMethods 1. Straight Line 2. Reducing BalanceCase 2Case 1Furniture & FixtureAssets NameMachine95,000113,775.001year+monthsCost150,00015Life815,000Residual Value25,000Rate-11.58%

Straight LineReducing BalanceWith SLN FunctionMannualWith DB FunctionYearsOpening BalanceDepriciation ChargeNBVYearsOpening BalanceDepriciation ChargeNet Book ValueYearsOpening BalanceDepriciation ChargeNet Book Value1150,00015,625134,375195,00011,00084,00019500011,02083,9802134,37515,625118,750284,0009,72674,274283,9809,74274,2383118,75015,625103,125374,2748,60065,675374,2388,61265,6274103,12515,62587,500465,6757,60458,070465,6277,61358,014587,50015,62571,875558,0706,72451,347558,0146,73051,284671,87515,62556,250651,3475,94545,402651,2845,94945,335756,25015,62540,625745,4025,25740,145745,3355,25940,076840,62515,62525,000840,1454,64835,497840,0764,64935,428935,4974,11031,387935,4284,11031,318Mannual1031,3873,63427,7521031,3183,63327,685YearsOpening BalanceDepriciation ChargeNBV1127,7523,21324,5391127,6853,21124,4741150,00015,625134,3751224,5392,84121,6981224,4742,83921,6352134,37515,625118,7501321,6982,51219,1861321,6352,51019,1253118,75015,625103,1251419,1862,22116,9641419,1252,21916,9074103,12515,62587,5001516,9641,96415,0001516,9071,96114,945587,50015,62571,875671,87515,62556,250756,25015,62540,625840,62515,62525,000

Cash BookCash BookBalances650,000.00245,000.00405,000.00Sr. NoDate DescriptionDebit CreditBalance1cash sales250,000250,0002commision25,000225,0003Rent and Rates10,000215,0004Wages & Salaries50,000165,0005Depreciation165,0006Loan Issued150,000315,0007Purchase100,000215,0008Plant & Machinery Purchsed60,000155,0009Building Sold50,000205,00010Share Capital Issued200,000405,000

Variance AnalysisVariance Analysis For 3 MonthsJan-15Feb-15Mar-15Details Budget AmountActual AmountVarianceBudgeted AmountActual AmountVarianceBudgeted AmountActual AmountVarianceTotal VarianceIncomesSalary50000045000050000 Unfavourable400,000.0045000050000 Favourable45000047500025000 FavourableBonus10000012500025000 Favourable50,000.007500025000 Favourable75000700005000 UnfavourablePB Encashment75000070000050000 Unfavourable1,000.001500014000 Favourable15000001250000250000 UnfavourableProfit from Business20000018000020000 Unfavourable150,000.0012500025000 Unfavourable17500015000025000 UnfavourableDividend Received500006000010000 Favourable40,000.00450005000 Favourable45000400005000 UnfavourableIntrest Received800007000010000 Unfavourable70,000.009000020000 Favourable90000850005000 Unfavourable

ExpensesElectricity300004000010000 Unfavourable250003500010000 Unfavourable35000300005000 FavourableTelephone500070002000 Unfavourable700060001000 Favourable9000100001000 UnfavourableRent and Rates50000450005000 Favourable60000550005000 Favourable55000600005000 UnfavourableRenovation Expense700006000010000 Favourable500006500015000 Unfavourable65000600005000 FavourableInsurance Expense15000010000050000 Favourable12500015000025000 Unfavourable1400001420002000 UnfavourableTraining Expense20000015000050000 Favourable15000012500025000 Favourable17500015000025000 FavourableEntertainment10000012500025000 Unfavourable700006000010000 Favourable12500015000025000 Unfavourable

Tax CalculatorINCOME TAX CALCULATOR 2015Slab No.Lower LimitUpper Limit Fixed ChargeRateBasic Salary115,50010.0400,0000.00.0%Taxable Allowances16,0002400,001750,0000.05.0%Gross Salary Monthly131,5003750,0011,400,00017,50010.0%41,400,0011,500,00082,50012.5%Annual Salary1,578,00051,500,0011,800,00095,00015.0%61,800,0012,500,000140,00017.5%Annual tax Liability106,70072,500,0013,000,000262,50020.0%83,000,0013,500,000362,50022.5%Monthly Tax Liability8,89293,500,0014,000,000475,00025.0%104,000,0017,000,000600,00027.5%Net Monthly in hand122,608117,000,0019,999,999,9991,425,00030.0%

INCOME TAX CALCULATOR 2015Slab No.Lower LimitUpper Limit Fixed ChargeRateBasic Salary100,00010.0400,0000.00.0%Taxable Allowances35,0002400,001750,0000.05.0%Gross Salary Monthly135,0003750,0011,400,00017,50010.0%41,400,0011,500,00082,50012.5%Annual Salary1,620,00051,500,0011,800,00095,00015.0%61,800,0012,500,000140,00017.5%Annual tax Liability113,00072,500,0013,000,000262,50020.0%83,000,0013,500,000362,50022.5%Monthly Tax Liability9,41793,500,0014,000,000475,00025.0%104,000,0017,000,000600,00027.5%Net Monthly in hand125,583117,000,0019,999,999,9991,425,00030.0%

Bond ValuationBond ValuationIssue DateSettlement DateMaturity 1/1/021/6/021/1/12Price ?Coupon Rate 8Redemption Value 100price formulafrequncy intrest paid Yield Rate6annualy 1half yearly2price125.9763971863quarterly 4Yield Ratebasisyear days3600Coupon Rate 83651Redemption Value 100

price71.71Yield Rate10.0003138348Coupon Rate 8.00%8.50%10.50%Price100200000$216,000.00$234,360.00$258,967.80Redemption Value 110price65

Yield Rate10fv258,967.80coupon Rate0.91%

Ace Ltd NpvDataAce Ltdmachine cost7,000annual savings wages1,000material400Inflation Rateswages10%material5%general prices6%Cost of Capital15%Life5workingyears01234512345Initial Investment-7000wages savings10001000100010001000Wages Savings1100121013311464.11610.51inflation rates 101.11.211.3311.46411.61051material savings420441463.05486.2025510.512625savings in money terms1100121013311464.11610.51cashflows in money terms-7000152016511794.051950.30252121.022625Discount Rate10.86956521740.75614366730.65751623240.57175324560.4971767353material savings400400400400400Present Values-70001321.73913043481248.3931947071179.61699679461115.09178426321054.5231041913 Infl rate 51.051.10251.1576251.215506251.2762815625material savings420441463.05486.2025510.512625Net Present Value-1080.6357896091With Formula of FVYears012345wages savings10001000100010001000inflated$1,100.00$1,210.00$1,331.00$1,464.10$1,610.51

mat savings400400400400400inflated$420.00$441.00$463.05$486.20$510.51net cashflows-7000$1,520.00$1,651.00$1,794.05$1,950.30$2,121.02NPV($1,080.64)DecisionBad

IRR8.63%DecisionRejectFor IRR the initial investment must be in minus value

Lima Bread CoData Lima CoDated1/1/14Selling price per unit45Variable Cost Per Unit25Increase 10%From AprilFixed Cost per month40,000febmaraprmayjunJan Units6150Increase 15%7073813393531075612370v cost$27.50$30.25$33.282014a,bJanFebMarAprMayJunSales276,750318,263366,002420,902484,037556,643Variable Cost153,750176,813203,334233,835295,801374,188Gross Income123,000141,450162,668187,068188,237182,455Fixed Cost40,00040,00040,00040,00040,00040,000Operating Income83,000101,450122,668147,068148,237142,455Breakeven Units2,000

janProjectionsselling price per unit4515%unit sold6150Feb7073revenue276750Mar8133variable cost25Apr9353total variable cost153750May10756fixed cost40000Jun12370total cost193750febmaraprmayjunprofit83000vcvcvcvcvc83000252527.527.527.5VCVCVC VCVCFeb7073101,450.00101,450.0083,768.7583,768.7583,768.7583000252527.527.527.5Mar8133122,667.50122,667.50102,334.06102,334.06102,334.06feb707310146010146083777.583777.583777.5Apr9353147,067.63147,067.63123,684.17123,684.17123,684.17Mar8133122660122660102327.5102327.5102327.5May10756175,127.77175,127.77148,236.80148,236.80148,236.80Apr9353147060147060123677.5123677.5123677.5Jun12370207,396.93207,396.93176,472.32176,472.32176,472.32May10756175120175120148230148230148230jun12370207400207400176475176475176475Breakeven at vc 252000breakeven at vc27.52286MonthProfitJune TargetJan8300025000016571Feb101,450.00Mar122,667.50Apr123,684.17May148,236.80Jun176,472.32codeprodratecodeprodratePiz001Bre001Piz001pizza25pizzabreadBre001bread502550codeprodratebre001bread50Piz001pizza25

assignment 5

Apartment costFundingEstimated Value After 10 years3,200,000Price1,600,000Equity720,000Annual Rental Income 83,200Furnishing Cost10,000Debt900,000Bank Charges10,000Total 1,620,000Gain rate 7%

Total Cost1,620,000

Property Valuation Period12345678910Opening Balance1,600,000.001,714,837.541,837,917.371,969,831.062,111,212.662,262,741.702,425,146.512,599,207.672,785,761.802,985,705.57Gain114,837.54123,079.83131,913.69141,381.60151,529.04162,404.81174,061.16186,554.13199,943.77214,294.43Closing Balance1,714,837.541,837,917.371,969,831.062,111,212.662,262,741.702,425,146.512,599,207.672,785,761.802,985,705.573,200,000.00

Cashflows From PropertyAnnual Growth Rate2%2%5%5%5%5%5%5%5%Rental Income83,200.0084,864.0086,561.2890,889.3495,433.81100,205.50105,215.78110,476.57116,000.39121,800.41Agency Fee9%-7,488.00-7,637.76-7,790.52-8,180.04-8,589.04-9,018.50-9,469.42-9,942.89-10,440.04-10,962.04Maintinance Cost5%-4,160.00-4,243.20-4,328.06-4,544.47-4,771.69-5,010.28-5,260.79-5,523.83-5,800.02-6,090.02Cashflows Before Intrest & Tax71,552.0072,983.0474,442.7078,164.8482,073.0886,176.7390,485.5795,009.8599,760.34104,748.36Intrest Expense5%-45,000-44,137.06-43,199.57-42,184.16-41,014.79-39,680.40-38,169.27-36,468.99-34,566.41-32,447.61Cashflows Before Tax26,552.0028,845.9831,243.1435,980.6741,058.2946,496.3352,316.3058,540.8665,193.9372,300.75Tax Expense35%-9,293.20-10,096.09-10,935.10-12,593.24-14,370.40-16,273.72-18,310.71-20,489.30-22,817.88-25,305.26Net CashFlows17,258.8018,749.8920,308.0423,387.4426,687.8930,222.6234,005.6038,051.5642,376.0546,995.49Debt Opening Balance900,000.00882,741.20863,991.31843,683.28820,295.84793,607.95763,385.34729,379.74691,328.18648,952.13Repayment-17,258.80-18,749.89-20,308.04-23,387.44-26,687.89-30,222.62-34,005.60-38,051.56-42,376.05-46,995.49Closing Balance882,741.20863,991.31843,683.28820,295.84793,607.95763,385.34729,379.74691,328.18648,952.13601,956.64Capital GainSales Period 5Gain0.00.00.00.0642,741.700.00.00.00.00.0CGT20%0.00.00.00.0128,548.340.00.00.00.00.0

Cashflows After Sales-720,0000.00.00.00.01,340,585.410.00.00.00.00.0IRR13.24%

Sheet2