initial commit / add all books

author: priyanka 2015-06-24 15:03:17 +0530
committer: priyanka 2015-06-24 15:03:17 +0530
commit: b1f5c3f8d6671b4331cef1dcebdf63b7a43a3a2b (patch)
tree: ab291cffc65280e58ac82470ba63fbcca7805165 /1208/CH4
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22 files changed, 954 insertions, 0 deletions
diff --git a/1208/CH4/EX4.1/Exa1.sce b/1208/CH4/EX4.1/Exa1.sce
new file mode 100755
index 000000000..3b5aeddcd
--- /dev/null
+++ b/1208/CH4/EX4.1/Exa1.sce
@@ -0,0 +1,9 @@
+//Exa 1
+clc;
+clear;
+close;
+//given data : 
+OrgInv=50000;//in Rs.
+AnnualCashInflow=10000;//in Rs.
+PaybackPeriod=OrgInv/AnnualCashInflow;
+disp(PaybackPeriod,"Payback period of the project(in years) is : ");
+\ No newline at end of file
diff --git a/1208/CH4/EX4.10/Exa10.sce b/1208/CH4/EX4.10/Exa10.sce
new file mode 100755
index 000000000..e27fa74a7
--- /dev/null
+++ b/1208/CH4/EX4.10/Exa10.sce
@@ -0,0 +1,26 @@
+//Exa 10
+clc;
+clear;
+close;
+//given data :
+//initial cash outflows
+ICO=40000;//in Rs.
+//cash in flows of 1st,2nd,3rd and 4th years is same
+CIF=16000;//in Rs.
+//PV Factor 
+PV=ICO/CIF;//unitless
+disp(PV,"PV fator of the project is : ")
+disp("This value is in between 2.4936 and 2.5887");
+disp("Hence IRR of the project is expected to lie between 20% and 22%")
+//PV of cash in flows at 20%
+PV20=CIF*2.5887;//in Rs
+PV22=CIF*2.4936;//in Rs
+disp(PV20,"at 20% PV of cash in flows(in Rs) is : ")
+disp(PV22,"at 22% PV of cash in flows(in Rs) is : ")
+//By interpolation
+LDR=20;//in % ;Lower discount rate
+HDR=22;//in % ;Higher discount rate
+P1=41419;//in Rs; Present value at lower rate of interest
+P2=39898;//in Rs; Present value at higher rate of interest
+IRR=LDR+((P1-ICO)/(P1-P2))*(HDR-LDR);//in % : Internal rate of return
+disp(IRR,"Internal rate of return of the project(in %) : ")
+\ No newline at end of file
diff --git a/1208/CH4/EX4.11/Exa11.sce b/1208/CH4/EX4.11/Exa11.sce
new file mode 100755
index 000000000..ceb9ce1b6
--- /dev/null
+++ b/1208/CH4/EX4.11/Exa11.sce
@@ -0,0 +1,49 @@
+//Exa 11
+clc;
+clear;
+close;
+//given data :
+//initial cash outflows
+ICO=10000;//in Rs.
+//cash in flows of 1st,2nd and 3rd years
+CIF1=5000;//in Rs.
+CIF2=4000;//in Rs.
+CIF3=3000;//in Rs.
+//average annual CIF
+CIF=(CIF1+CIF2+CIF3)/3;//in Rs
+//step 1 : calculate first trial rate
+PV=ICO/CIF;//unitless
+disp(PV,"Trial PV factor is : ")
+disp("The rate of return at this PV is approximately 10%")
+//P.V factor at 10% rate of discount
+PV1=0.909;
+PV2=0.826;
+PV3=0.751;
+//Present value for all cash in flows
+P1=CIF1*PV1;// in Rs
+P2=CIF2*PV2;// in Rs
+P3=CIF3*PV3;// in Rs
+//Total Present Value
+P=P1+P2+P3;// in Rs
+disp(P,"total present value of cash inflows at 10% rate is : ")
+disp("As the total present value of cash inflows at 10% rate is 10102 RS. is more than the cost of investment.")
+disp("The next trial rate can be taken as 12%.")
+//P.V factor at 12% rate of discount
+PV1=0.893;
+PV2=0.797;
+PV3=0.712;
+//Present value for all cash in flows
+P1=CIF1*PV1;// in Rs
+P2=CIF2*PV2;// in Rs
+P3=CIF3*PV3;// in Rs
+//Total Present Value
+P=P1+P2+P3;// in Rs
+disp(P,"total present value of cash inflows at 12% rate is : ")
+disp("As the total present value of cash inflows at 12% rate is 9789 RS. is less than the cost of investment.")
+//IRR will be calculated by interpolation of these two rates
+LDR=10;//in % ;Lower discount rate
+HDR=12;//in % ;Higher discount rate
+P1=10102;//in Rs; Present value at lower rate of interest
+P2=9789;//in Rs; Present value at higher rate of interest
+IRR=LDR+((P1-ICO)/(P1-P2))*(HDR-LDR);//in % : Internal rate of return
+disp(IRR,"Internal rate of return of the project(in %) : ")
diff --git a/1208/CH4/EX4.12/Exa12.sce b/1208/CH4/EX4.12/Exa12.sce
new file mode 100755
index 000000000..6f4d46f30
--- /dev/null
+++ b/1208/CH4/EX4.12/Exa12.sce
@@ -0,0 +1,56 @@
+//Exa 12
+clc;
+clear;
+close;
+//given data :
+//initial cash outflows
+ICO=70000;//in Rs.
+//cash in flows of 1st,2nd,3rd,4th and 5th years
+CIF1=50000;//in Rs.
+CIF2=40000;//in Rs.
+CIF3=20000;//in Rs.
+CIF4=10000;//in Rs.
+CIF5=10000;//in Rs.
+//P.V factor at 35% rate of discount
+PV1=0.741;
+PV2=0.549;
+PV3=0.406;
+PV4=0.301;
+PV5=0.223;
+//Present value for all cash in flows
+P1=CIF1*PV1;// in Rs
+P2=CIF2*PV2;// in Rs
+P3=CIF3*PV3;// in Rs
+P4=CIF4*PV4;// in Rs
+P5=CIF5*PV5;// in Rs
+//Total Present Value
+P=P1+P2+P3+P4+P5;// in Rs
+disp(P,"Total present value(in Rs) is : ")
+disp("As the total present value of cash inflows at 35% rate is 72370 RS. is more than the cost of investment.")
+disp("The next trial rate can be taken as 40%.")
+//P.V factor at 40% rate of discount
+PV1=0.714;
+PV2=0.510;
+PV3=0.364;
+PV4=0.260;
+PV5=0.186;
+//Present value for all cash in flows
+P1=CIF1*PV1;// in Rs
+P2=CIF2*PV2;// in Rs
+P3=CIF3*PV3;// in Rs
+P4=CIF4*PV4;// in Rs
+P5=CIF5*PV5;// in Rs
+//Total Present Value
+P=P1+P2+P3+P4+P5;// in Rs
+disp(P,"Total present value(in Rs) is : ")
+disp("As the total present value of cash inflows at 40% rate is 67840 RS. is less than the cost of investment.")
+//IRR will be calculated by interpolation of these two rates
+LDR=35;//in % ;Lower discount rate
+HDR=40;//in % ;Higher discount rate
+P1=72370;//in Rs; Present value at lower rate of interest
+P2=67840;//in Rs; Present value at higher rate of interest
+IRR=LDR+((P1-ICO)/(P1-P2))*(HDR-LDR);//in % : Internal rate of return
+disp(IRR,"Internal rate of return of the project(in %) : ")
+//Minimum desired rate of return fixed by management is 25%
+disp("As the calculated IRR is greater than the minimum fixed rate. Project should be acepted.")
+
diff --git a/1208/CH4/EX4.13.1/Exa13_1.sce b/1208/CH4/EX4.13.1/Exa13_1.sce
new file mode 100755
index 000000000..73f5ad7af
--- /dev/null
+++ b/1208/CH4/EX4.13.1/Exa13_1.sce
@@ -0,0 +1,38 @@
+//Exa 13.1
+clc;
+clear;
+close;
+//given data :
+//initial cash outflows
+ICO=80000;//in Rs.
+//cash in flows of 10 years
+CIF1=14000;//in Rs.
+CIF2=14000;//in Rs.
+CIF3=14000;//in Rs.
+CIF4=14000;//in Rs.
+CIF5=14000;//in Rs.
+CIF6=16000;//in Rs.
+CIF7=20000;//in Rs.
+CIF8=30000;//in Rs.
+CIF9=20000;//in Rs.
+CIF10=8000;//in Rs.
+//Cummulative cash in flows of 10 years
+CumCIF1=14000;//in Rs.
+CumCIF2=28000;//in Rs.
+CumCIF3=42000;//in Rs.
+CumCIF4=560000;//in Rs.
+CumCIF5=70000;//in Rs.
+CumCIF6=86000;//in Rs.
+CumCIF7=106000;//in Rs.
+CumCIF8=136000;//in Rs.
+CumCIF9=156000;//in Rs.
+CumCIF10=164000;//in Rs.
+disp("In the table it can be seen that in 5 years 70000 Rs has been recovered, Rs. 10000 is left out of initial investment.")
+disp("Payback period is between 5 and 6 years.")
+E=5;
+B=80000-70000;//remaining balance to be recovered
+C=16000;//cash flow of last payback year
+PaybackPeriod=E+B/C;
+disp(PaybackPeriod,"Payback period of the project(in years) is : ");
+
+
diff --git a/1208/CH4/EX4.13.2/Exa13_2.sce b/1208/CH4/EX4.13.2/Exa13_2.sce
new file mode 100755
index 000000000..1a60d6ce2
--- /dev/null
+++ b/1208/CH4/EX4.13.2/Exa13_2.sce
@@ -0,0 +1,45 @@
+//Exa 13.2
+clc;
+clear;
+close;
+//given data :
+//initial cash outflows
+ICO=80000;//in Rs.
+//cash in flows of 10 years
+CIF1=14000;//in Rs.
+CIF2=14000;//in Rs.
+CIF3=14000;//in Rs.
+CIF4=14000;//in Rs.
+CIF5=14000;//in Rs.
+CIF6=16000;//in Rs.
+CIF7=20000;//in Rs.
+CIF8=30000;//in Rs.
+CIF9=20000;//in Rs.
+CIF10=8000;//in Rs.
+//Cummulative cash in flows of 10 years
+CumCIF1=14000;//in Rs.
+CumCIF2=28000;//in Rs.
+CumCIF3=42000;//in Rs.
+CumCIF4=560000;//in Rs.
+CumCIF5=70000;//in Rs.
+CumCIF6=86000;//in Rs.
+CumCIF7=106000;//in Rs.
+CumCIF8=136000;//in Rs.
+CumCIF9=156000;//in Rs.
+CumCIF10=164000;//in Rs.
+//average annual CIF
+AvgCIF=CumCIF10/10;
+//Average Depreciation per annum
+AvgD=ICO/10;
+//average investmet
+AvgINV=40000;//in Rs
+//Calculation of average rate of return
+ARR=((AvgCIF-AvgD)/AvgINV)*100;//in %
+disp(ARR,"Average rate of return of the project(in %) is : ")
+//Average annual cash in flow
+AvgCIF=CIF10/10;//in Rs
+//Annual Depreciation
+ScrapValue=0;
+ADep=(ICO-ScrapValue)/10;//in Rs
+//Average investment
+AvgInv=(ICO+ScrapValue)/2;//in Rs
+\ No newline at end of file
diff --git a/1208/CH4/EX4.13.3/Exa13_3.sce b/1208/CH4/EX4.13.3/Exa13_3.sce
new file mode 100755
index 000000000..ca9c1a730
--- /dev/null
+++ b/1208/CH4/EX4.13.3/Exa13_3.sce
@@ -0,0 +1,46 @@
+//Exa 13.3
+clc;
+clear;
+close;
+//given data :
+//initial cash outflows
+ICO=80000;//in Rs.
+//cash in flows of 10 years
+CIF1=14000;//in Rs.
+CIF2=14000;//in Rs.
+CIF3=14000;//in Rs.
+CIF4=14000;//in Rs.
+CIF5=14000;//in Rs.
+CIF6=16000;//in Rs.
+CIF7=20000;//in Rs.
+CIF8=30000;//in Rs.
+CIF9=20000;//in Rs.
+CIF10=8000;//in Rs.
+//P.V factor at 10% rate of discount
+PV1=0.909;
+PV2=0.826;
+PV3=0.751;
+PV4=0.683;
+PV5=0.621;
+PV6=0.564;
+PV7=0.513;
+PV8=0.467;
+PV9=0.424;
+PV10=0.386;
+//Present value for all cash in flows
+P1=CIF1*PV1;// in Rs
+P2=CIF2*PV2;// in Rs
+P3=CIF3*PV3;// in Rs
+P4=CIF4*PV4;// in Rs
+P5=CIF5*PV5;// in Rs
+P6=CIF6*PV6;// in Rs
+P7=CIF7*PV7;// in Rs
+P8=CIF8*PV8;// in Rs
+P9=CIF9*PV9;// in Rs
+P10=CIF10*PV10;// in Rs
+//Total Present Value
+P=P1+P2+P3+P4+P5+P6+P7+P8+P9+P10;// in Rs
+disp(P,"Total present value(in Rs) is : ")
+//Net Present Value at 10% discount rate
+NPV=P-ICO;// in Rs
+disp(NPV,"Net Present Value at 10% discount rate is : ")
+\ No newline at end of file
diff --git a/1208/CH4/EX4.13.4/Exa13_4.sce b/1208/CH4/EX4.13.4/Exa13_4.sce
new file mode 100755
index 000000000..655b0522d
--- /dev/null
+++ b/1208/CH4/EX4.13.4/Exa13_4.sce
@@ -0,0 +1,13 @@
+//Exa 13.4
+clc;
+clear;
+close;
+//given data :
+//initial cash outflows
+ICO=80000;//in Rs.
+//Total Present Value calculated in Exa13.3
+P=97922;//in Rs
+disp(P,"Total present value(in Rs) is : ")
+//Profitability Index at 10% discount rate 
+PI=P/ICO;//unitless
+disp(PI,"Profitability Index at 10% discount rate is : ")
+\ No newline at end of file
diff --git a/1208/CH4/EX4.13.5/Exa13_5.sce b/1208/CH4/EX4.13.5/Exa13_5.sce
new file mode 100755
index 000000000..6b2430fe7
--- /dev/null
+++ b/1208/CH4/EX4.13.5/Exa13_5.sce
@@ -0,0 +1,61 @@
+//Exa 13.5
+clc;
+clear;
+close;
+//given data :
+//initial cash outflows
+ICO=80000;//in Rs.
+//cash in flows of 10 years
+CIF1=14000;//in Rs.
+CIF2=14000;//in Rs.
+CIF3=14000;//in Rs.
+CIF4=14000;//in Rs.
+CIF5=14000;//in Rs.
+CIF6=16000;//in Rs.
+CIF7=20000;//in Rs.
+CIF8=30000;//in Rs.
+CIF9=20000;//in Rs.
+CIF10=8000;//in Rs.
+//Cummulative cash in flows of 10 years
+CumCIF1=14000;//in Rs.
+CumCIF2=28000;//in Rs.
+CumCIF3=42000;//in Rs.
+CumCIF4=560000;//in Rs.
+CumCIF5=70000;//in Rs.
+CumCIF6=86000;//in Rs.
+CumCIF7=106000;//in Rs.
+CumCIF8=136000;//in Rs.
+CumCIF9=156000;//in Rs.
+CumCIF10=164000;//in Rs.
+//P.V factor at 15% rate of discount
+PV1=0.870;
+PV2=0.756;
+PV3=0.658;
+PV4=0.572;
+PV5=0.497;
+PV6=0.432;
+PV7=0.376;
+PV8=0.327;
+PV9=0.284;
+PV10=0.247;
+//Present value for all cash in flows
+P1=CIF1*PV1;// in Rs
+P2=CIF2*PV2;// in Rs
+P3=CIF3*PV3;// in Rs
+P4=CIF4*PV4;// in Rs
+P5=CIF5*PV5;// in Rs
+P6=CIF6*PV6;// in Rs
+P7=CIF7*PV7;// in Rs
+P8=CIF8*PV8;// in Rs
+P9=CIF9*PV9;// in Rs
+P10=CIF10*PV10;// in Rs
+//Total Present Value
+P=P1+P2+P3+P4+P5+P6+P7+P8+P9+P10;// in Rs
+disp(P,"Total present value(in Rs) is : ")
+//IRR By interpolation
+LDR=10;//in % ;Lower discount rate
+HDR=15;//in % ;Higher discount rate
+P1=97922;//in Rs; Present value at lower rate of interest
+P2=78840;//in Rs; Present value at higher rate of interest
+IRR=LDR+((P1-ICO)/(P1-P2))*(HDR-LDR);//in % : Internal rate of return
+disp(IRR,"Internal rate of return of the project(in %) : ")
+\ No newline at end of file
diff --git a/1208/CH4/EX4.14.1/Exa14_1.sce b/1208/CH4/EX4.14.1/Exa14_1.sce
new file mode 100755
index 000000000..0fac34da0
--- /dev/null
+++ b/1208/CH4/EX4.14.1/Exa14_1.sce
@@ -0,0 +1,53 @@
+//Exa 14(i)
+clc;
+clear;
+close;
+//given data :
+inINV=50000;//initial investment in Rs. and equal for all projects
+life=5;//in years
+salvage=0;//in Rs.
+TaxRate=55;//in %
+//depreciation type :Straight line 
+D=inINV/life;//in Rs
+//cash flows before tax of 1st,2nd,3rd,4th and 5th years
+CBFT1=10000;//in Rs.
+CBFT2=11000;//in Rs.
+CBFT3=14000;//in Rs.
+CBFT4=15000;//in Rs.
+CBFT5=25000;//in Rs.
+//Income before tax after depreciation
+IBT1=CBFT1-D;//in Rs.
+IBT2=CBFT2-D;//in Rs.
+IBT3=CBFT3-D;//in Rs.
+IBT4=CBFT4-D;//in Rs.
+IBT5=CBFT5-D;//in Rs.
+//Net income after Tax (55%) and depreciation
+IATD1=IBT1-(IBT1*55)/100;//in Rs
+IATD2=IBT2-(IBT2*55)/100;//in Rs
+IATD3=IBT3-(IBT3*55)/100;//in Rs
+IATD4=IBT4-(IBT4*55)/100;//in Rs
+IATD5=IBT5-(IBT5*55)/100;//in Rs
+//Average annual income after tax and depreciation
+IATD=(IATD1+IATD2+IATD3+IATD4+IATD5)/5;//in Rs.
+//Average Investment
+AvgInv=(inINV+salvage)/2;//in Rs
+//Annual cash inflows
+ACI1=IATD1+D;//in RS
+ACI2=IATD2+D;//in RS
+ACI3=IATD3+D;//in RS
+ACI4=IATD4+D;//in RS
+ACI5=IATD5+D;//in RS
+//Project A : Cummulative cash in flows of 1st,2nd,3rd,4th and 5th years
+CumCIF1=ACI1;//in Rs.
+CumCIF2=ACI1+ACI2;//in Rs.
+CumCIF3=ACI1+ACI2+ACI3;//in Rs.
+CumCIF4=ACI1+ACI2+ACI3+ACI4;//in Rs.
+CumCIF5=ACI1+ACI2+ACI3+ACI4+ACI5;//in Rs.
+//part (i) calculation of payback period
+disp("In the computation it can be seen that in 4 years 44500 Rs has been recovered, Rs. 5500 is left out of initial investment.")
+disp("Payback period is between 4 and 5 years.")
+E=4;
+B=50000-44500;//remaining balance to be recovered
+C=16750;//cash flow of last payback year
+PaybackPeriod=E+B/C;
+disp(PaybackPeriod,"Part(i) Payback period of the project(in years) is : ");
+\ No newline at end of file
diff --git a/1208/CH4/EX4.14.2/Exa14_2.sce b/1208/CH4/EX4.14.2/Exa14_2.sce
new file mode 100755
index 000000000..34de1f46b
--- /dev/null
+++ b/1208/CH4/EX4.14.2/Exa14_2.sce
@@ -0,0 +1,49 @@
+//Exa 14(ii)
+clc;
+clear;
+close;
+//given data :
+inINV=50000;//initial investment in Rs. and equal for all projects
+life=5;//in years
+salvage=0;//in Rs.
+TaxRate=55;//in %
+//depreciation type :Straight line 
+D=inINV/life;//in Rs
+//cash flows before tax of 1st,2nd,3rd,4th and 5th years
+CBFT1=10000;//in Rs.
+CBFT2=11000;//in Rs.
+CBFT3=14000;//in Rs.
+CBFT4=15000;//in Rs.
+CBFT5=25000;//in Rs.
+//Income before tax after depreciation
+IBT1=CBFT1-D;//in Rs.
+IBT2=CBFT2-D;//in Rs.
+IBT3=CBFT3-D;//in Rs.
+IBT4=CBFT4-D;//in Rs.
+IBT5=CBFT5-D;//in Rs.
+//Net income after Tax (55%) and depreciation
+IATD1=IBT1-(IBT1*55)/100;//in Rs
+IATD2=IBT2-(IBT2*55)/100;//in Rs
+IATD3=IBT3-(IBT3*55)/100;//in Rs
+IATD4=IBT4-(IBT4*55)/100;//in Rs
+IATD5=IBT5-(IBT5*55)/100;//in Rs
+//Average annual income after tax and depreciation
+IATD=(IATD1+IATD2+IATD3+IATD4+IATD5)/5;//in Rs.
+//Average Investment
+AvgInv=(inINV+salvage)/2;//in Rs
+//Annual cash inflows
+ACI1=IATD1+D;//in RS
+ACI2=IATD2+D;//in RS
+ACI3=IATD3+D;//in RS
+ACI4=IATD4+D;//in RS
+ACI5=IATD5+D;//in RS
+//Project A : Cummulative cash in flows of 1st,2nd,3rd,4th and 5th years
+CumCIF1=ACI1;//in Rs.
+CumCIF2=ACI1+ACI2;//in Rs.
+CumCIF3=ACI1+ACI2+ACI3;//in Rs.
+CumCIF4=ACI1+ACI2+ACI3+ACI4;//in Rs.
+CumCIF5=ACI1+ACI2+ACI3+ACI4+ACI5;//in Rs.
+//part (ii) calculation of ARR
+ARR=(IATD/AvgInv)*100;//in %
+disp(ARR,"Part(ii) Average rate of return (in %) : ")
+
diff --git a/1208/CH4/EX4.14.3/Exa14_3.sce b/1208/CH4/EX4.14.3/Exa14_3.sce
new file mode 100755
index 000000000..bab6ee9a3
--- /dev/null
+++ b/1208/CH4/EX4.14.3/Exa14_3.sce
@@ -0,0 +1,65 @@
+//Exa 14(iii)
+clc;
+clear;
+close;
+//given data :
+inINV=50000;//initial investment in Rs. and equal for all projects
+life=5;//in years
+salvage=0;//in Rs.
+TaxRate=55;//in %
+//depreciation type :Straight line 
+D=inINV/life;//in Rs
+//cash flows before tax of 1st,2nd,3rd,4th and 5th years
+CBFT1=10000;//in Rs.
+CBFT2=11000;//in Rs.
+CBFT3=14000;//in Rs.
+CBFT4=15000;//in Rs.
+CBFT5=25000;//in Rs.
+//Income before tax after depreciation
+IBT1=CBFT1-D;//in Rs.
+IBT2=CBFT2-D;//in Rs.
+IBT3=CBFT3-D;//in Rs.
+IBT4=CBFT4-D;//in Rs.
+IBT5=CBFT5-D;//in Rs.
+//Net income after Tax (55%) and depreciation
+IATD1=IBT1-(IBT1*55)/100;//in Rs
+IATD2=IBT2-(IBT2*55)/100;//in Rs
+IATD3=IBT3-(IBT3*55)/100;//in Rs
+IATD4=IBT4-(IBT4*55)/100;//in Rs
+IATD5=IBT5-(IBT5*55)/100;//in Rs
+//Average annual income after tax and depreciation
+IATD=(IATD1+IATD2+IATD3+IATD4+IATD5)/5;//in Rs.
+//Average Investment
+AvgInv=(inINV+salvage)/2;//in Rs
+//Annual cash inflows
+ACI1=IATD1+D;//in RS
+ACI2=IATD2+D;//in RS
+ACI3=IATD3+D;//in RS
+ACI4=IATD4+D;//in RS
+ACI5=IATD5+D;//in RS
+//Project A : Cummulative cash in flows of 1st,2nd,3rd,4th and 5th years
+CumCIF1=ACI1;//in Rs.
+CumCIF2=ACI1+ACI2;//in Rs.
+CumCIF3=ACI1+ACI2+ACI3;//in Rs.
+CumCIF4=ACI1+ACI2+ACI3+ACI4;//in Rs.
+CumCIF5=ACI1+ACI2+ACI3+ACI4+ACI5;//in Rs.
+
+//part (iii) calculation of Net Present value
+//PV at 10%
+//P.V factor at 10% rate of discount
+PV1=0.909;
+PV2=0.826;
+PV3=0.751;
+PV4=0.683;
+PV5=0.621;
+//Present value for all cash in flows at 10% discount Rate
+P1=ACI1*PV1;// in Rs
+P2=ACI2*PV2;// in Rs
+P3=ACI3*PV3;// in Rs
+P4=ACI4*PV4;// in Rs
+P5=ACI5*PV5;// in Rs
+//Total Present Value
+P=P1+P2+P3+P4+P5;// in Rs
+//Net Present Value
+NPV=P-inINV;// in Rs
+disp(NPV,"Part(iii) Net Present Value is : ")
+\ No newline at end of file
diff --git a/1208/CH4/EX4.14.4/Exa14_4.sce b/1208/CH4/EX4.14.4/Exa14_4.sce
new file mode 100755
index 000000000..201848c26
--- /dev/null
+++ b/1208/CH4/EX4.14.4/Exa14_4.sce
@@ -0,0 +1,48 @@
+//Exa 14(iv)
+clc;
+clear;
+close;
+//given data :
+inINV=50000;//initial investment in Rs. and equal for all projects
+life=5;//in years
+salvage=0;//in Rs.
+TaxRate=55;//in %
+//depreciation type :Straight line 
+D=inINV/life;//in Rs
+//cash flows before tax of 1st,2nd,3rd,4th and 5th years
+CBFT1=10000;//in Rs.
+CBFT2=11000;//in Rs.
+CBFT3=14000;//in Rs.
+CBFT4=15000;//in Rs.
+CBFT5=25000;//in Rs.
+//Income before tax after depreciation
+IBT1=CBFT1-D;//in Rs.
+IBT2=CBFT2-D;//in Rs.
+IBT3=CBFT3-D;//in Rs.
+IBT4=CBFT4-D;//in Rs.
+IBT5=CBFT5-D;//in Rs.
+//Net income after Tax (55%) and depreciation
+IATD1=IBT1-(IBT1*55)/100;//in Rs
+IATD2=IBT2-(IBT2*55)/100;//in Rs
+IATD3=IBT3-(IBT3*55)/100;//in Rs
+IATD4=IBT4-(IBT4*55)/100;//in Rs
+IATD5=IBT5-(IBT5*55)/100;//in Rs
+//Average annual income after tax and depreciation
+IATD=(IATD1+IATD2+IATD3+IATD4+IATD5)/5;//in Rs.
+//Average Investment
+AvgInv=(inINV+salvage)/2;//in Rs
+//Annual cash inflows
+ACI1=IATD1+D;//in RS
+ACI2=IATD2+D;//in RS
+ACI3=IATD3+D;//in RS
+ACI4=IATD4+D;//in RS
+ACI5=IATD5+D;//in RS
+//Project A : Cummulative cash in flows of 1st,2nd,3rd,4th and 5th years
+CumCIF1=ACI1;//in Rs.
+CumCIF2=ACI1+ACI2;//in Rs.
+CumCIF3=ACI1+ACI2+ACI3;//in Rs.
+CumCIF4=ACI1+ACI2+ACI3+ACI4;//in Rs.
+CumCIF5=ACI1+ACI2+ACI3+ACI4+ACI5;//in Rs.
+//part (iv) Profitability index at 10% discount rate
+PI=P/inINV;//unitless
+disp(PI,"Part(iv) Profitability index at 10% discount rate : ");
+\ No newline at end of file
diff --git a/1208/CH4/EX4.14.5/Exa14_5.sce b/1208/CH4/EX4.14.5/Exa14_5.sce
new file mode 100755
index 000000000..7c72e86ed
--- /dev/null
+++ b/1208/CH4/EX4.14.5/Exa14_5.sce
@@ -0,0 +1,89 @@
+//Exa 14(v)
+clc;
+clear;
+close;
+//given data :
+inINV=50000;//initial investment in Rs. and equal for all projects
+life=5;//in years
+salvage=0;//in Rs.
+TaxRate=55;//in %
+//depreciation type :Straight line 
+D=inINV/life;//in Rs
+//cash flows before tax of 1st,2nd,3rd,4th and 5th years
+CBFT1=10000;//in Rs.
+CBFT2=11000;//in Rs.
+CBFT3=14000;//in Rs.
+CBFT4=15000;//in Rs.
+CBFT5=25000;//in Rs.
+//Income before tax after depreciation
+IBT1=CBFT1-D;//in Rs.
+IBT2=CBFT2-D;//in Rs.
+IBT3=CBFT3-D;//in Rs.
+IBT4=CBFT4-D;//in Rs.
+IBT5=CBFT5-D;//in Rs.
+//Net income after Tax (55%) and depreciation
+IATD1=IBT1-(IBT1*55)/100;//in Rs
+IATD2=IBT2-(IBT2*55)/100;//in Rs
+IATD3=IBT3-(IBT3*55)/100;//in Rs
+IATD4=IBT4-(IBT4*55)/100;//in Rs
+IATD5=IBT5-(IBT5*55)/100;//in Rs
+//Average annual income after tax and depreciation
+IATD=(IATD1+IATD2+IATD3+IATD4+IATD5)/5;//in Rs.
+//Average Investment
+AvgInv=(inINV+salvage)/2;//in Rs
+//Annual cash inflows
+ACI1=IATD1+D;//in RS
+ACI2=IATD2+D;//in RS
+ACI3=IATD3+D;//in RS
+ACI4=IATD4+D;//in RS
+ACI5=IATD5+D;//in RS
+//Project A : Cummulative cash in flows of 1st,2nd,3rd,4th and 5th years
+CumCIF1=ACI1;//in Rs.
+CumCIF2=ACI1+ACI2;//in Rs.
+CumCIF3=ACI1+ACI2+ACI3;//in Rs.
+CumCIF4=ACI1+ACI2+ACI3+ACI4;//in Rs.
+CumCIF5=ACI1+ACI2+ACI3+ACI4+ACI5;//in Rs.
+//part (v) Internal Rate of return
+disp("As the total present value of cash inflows at 10% rate is 45352 RS. is less than the cost of investment.")
+disp("The next trial rate can be taken as 8%.")
+//PV at 8%
+//P.V factor at 8% rate of discount
+PV1=0.926;
+PV2=0.857;
+PV3=0.794;
+PV4=0.735;
+PV5=0.681;
+//Present value for all cash in flows at 8% discount Rate
+P1=ACI1*PV1;// in Rs
+P2=ACI2*PV2;// in Rs
+P3=ACI3*PV3;// in Rs
+P4=ACI4*PV4;// in Rs
+P5=ACI5*PV5;// in Rs
+//Total Present Value
+P=P1+P2+P3+P4+P5;// in Rs
+disp(P,"Total Present Value at 8% discount rate.")
+disp("As the total present value of cash inflows at 8% rate is 47996 RS. is less than the cost of investment.")
+disp("The next trial rate can be taken as 6%.")
+//PV at 6%
+//P.V factor at 6% rate of discount
+PV1=0.943;
+PV2=0.890;
+PV3=0.840;
+PV4=0.792;
+PV5=0.747;
+//Present value for all cash in flows at 6% discount Rate
+P1=ACI1*PV1;// in Rs
+P2=ACI2*PV2;// in Rs
+P3=ACI3*PV3;// in Rs
+P4=ACI4*PV4;// in Rs
+P5=ACI5*PV5;// in Rs
+//Total Present Value
+P=P1+P2+P3+P4+P5;// in Rs
+disp("As the total present value of cash inflows at 6% rate is 50857 RS. is more than the cost of investment.")
+//IRR will be calculated by interpolation of these two rates 6% and 8%
+LDR=6;//in % ;Lower discount rate
+HDR=8;//in % ;Higher discount rate
+P1=50857;//in Rs; Present value at lower rate of interest
+P2=47996;//in Rs; Present value at higher rate of interest
+IRR=LDR+((P1-inINV)/(P1-P2))*(HDR-LDR);//in % : Internal rate of return
+disp(IRR,"Part(v) Internal rate of return of the project(in %) : ")
+\ No newline at end of file
diff --git a/1208/CH4/EX4.2/Exa2.sce b/1208/CH4/EX4.2/Exa2.sce
new file mode 100755
index 000000000..92847fc7d
--- /dev/null
+++ b/1208/CH4/EX4.2/Exa2.sce
@@ -0,0 +1,23 @@
+//Exa 2
+clc;
+clear;
+close;
+//given data :
+//cash in flows of 1st,2nd,3rd and 4th years
+CIF1=20000;//in Rs.
+CIF2=30000;//in Rs.
+CIF3=40000;//in Rs.
+CIF4=50000;//in Rs.
+//Cummulative cash in flows of 1st,2nd,3rd and 4th years
+CumCIF1=20000;//in Rs.
+CumCIF2=50000;//in Rs.
+CumCIF3=90000;//in Rs.
+CumCIF4=140000;//in Rs.
+disp("In the table it can be seen that in 3 years 90000 Rs has been recovered, Rs. 10000 is left out of initial investment.")
+disp("Payback period is between 3 and 4 years.")
+E=3;
+B=100000-90000;//remaining balance to be recovered
+C=50000;//cash flow of last year
+PaybackPeriod=E+B/C;
+disp(PaybackPeriod,"Payback period of the project(in years) is : ");
+//Note : ans in the book is not accurate, given 3 years and two month. but it is 3.2 years and can say 3 years 2 month plus 12 days.
+\ No newline at end of file
diff --git a/1208/CH4/EX4.3/Exa3.sce b/1208/CH4/EX4.3/Exa3.sce
new file mode 100755
index 000000000..f0b8d5f2f
--- /dev/null
+++ b/1208/CH4/EX4.3/Exa3.sce
@@ -0,0 +1,37 @@
+//Exa 1
+clc;
+clear;
+close;
+//given data for project A:
+Investment=100000;//in Rs
+AnnCIF=25000;//in Rs
+PayBackPeriod=Investment/AnnCIF;//in years
+disp(PayBackPeriod,"Payback period of the project A(in years) is : ")
+//given data for project B:
+Investment=70000;//in Rs
+AnnCIF=15000;//in Rs
+PayBackPeriod=Investment/AnnCIF;//in years
+disp(PayBackPeriod,"Payback period of the project B(in years) is : ")
+//given data for project C:
+Investment=32500;//in Rs
+AnnCIF=9000;//in Rs
+PayBackPeriod=Investment/AnnCIF;//in years
+disp(PayBackPeriod,"Payback period of the project C(in years) is : ")
+//given data for project D:
+Investment=97000;//in Rs
+AnnCIF=18000;//in Rs
+PayBackPeriod=Investment/AnnCIF;//in years
+disp(PayBackPeriod,"Payback period of the project D(in years) is : ")
+
+//given data for project E:
+Investment=58500;//in Rs
+AnnCIF=15500;//in Rs
+PayBackPeriod=Investment/AnnCIF;//in years
+disp(PayBackPeriod,"Payback period of the project E(in years) is : ")
+
+
+
+
+
+
+
diff --git a/1208/CH4/EX4.4/Exa4.sce b/1208/CH4/EX4.4/Exa4.sce
new file mode 100755
index 000000000..b01159e9b
--- /dev/null
+++ b/1208/CH4/EX4.4/Exa4.sce
@@ -0,0 +1,64 @@
+//Exa 4
+clc;
+clear;
+close;
+//given data :
+inINV=100000;//initial investment in Rs. and equal for all projects
+//Project A : cash in flows of 1st,2nd,3rd,4th and 5th years
+CIF1=30000;//in Rs.
+CIF2=30000;//in Rs.
+CIF3=30000;//in Rs.
+CIF4=30000;//in Rs.
+CIF5=30000;//in Rs.
+//Project A : Cummulative cash in flows of 1st,2nd,3rd,4th and 5th years
+CumCIF1=30000;//in Rs.
+CumCIF2=60000;//in Rs.
+CumCIF3=90000;//in Rs.
+CumCIF4=120000;//in Rs.
+CumCIF5=150000;//in Rs.
+disp("In the table it can be seen that in 3 years 90000 Rs has been recovered, Rs. 10000 is left out of initial investment.")
+disp("Payback period is between 3 and 4 years.")
+E=3;
+B=100000-90000;//remaining balance to be recovered
+C=30000;//cash flow of last payback year
+PaybackPeriod=E+B/C;
+disp(PaybackPeriod,"Payback period of the project A(in years) is : ");
+
+
+//Project B : cash in flows of 1st,2nd,3rd,4th and 5th years
+CIF1=30000;//in Rs.
+CIF2=40000;//in Rs.
+CIF3=20000;//in Rs.
+CIF4=10000;//in Rs.
+CIF5=5000;//in Rs.
+//Project B : Cummulative cash in flows of 1st,2nd,3rd,4th and 5th years
+CumCIF1=30000;//in Rs.
+CumCIF2=70000;//in Rs.
+CumCIF3=90000;//in Rs.
+CumCIF4=100000;//in Rs.
+CumCIF5=105000;//in Rs.
+disp("In the table it can be seen that in complete 4 years 100000 Rs has been recovered.")
+disp(4,"Payback period of the project B(in years) is : ");
+
+
+//Project C : cash in flows of 1st,2nd,3rd,4th and 5th years
+CIF1=40000;//in Rs.
+CIF2=20000;//in Rs.
+CIF3=30000;//in Rs.
+CIF4=40000;//in Rs.
+CIF5=10000;//in Rs.
+//Project C : Cummulative cash in flows of 1st,2nd,3rd,4th and 5th years
+CumCIF1=40000;//in Rs.
+CumCIF2=60000;//in Rs.
+CumCIF3=90000;//in Rs.
+CumCIF4=130000;//in Rs.
+CumCIF5=140000;//in Rs.
+disp("In the table it can be seen that in 3 years 90000 Rs has been recovered, Rs. 10000 is left out of initial investment.")
+disp("Payback period is between 3 and 4 years.")
+E=3;
+B=100000-90000;//remaining balance to be recovered
+C=40000;//cash flow of last payback year
+PaybackPeriod=E+B/C;
+disp(PaybackPeriod,"Payback period of the project C(in years) is : ");
+//final conclusion
+disp("As all the projects have payback period of less than 5 years and 5 years is the standard payback period, all the three projects are acceptable.")
+\ No newline at end of file
diff --git a/1208/CH4/EX4.5/Exa5.sce b/1208/CH4/EX4.5/Exa5.sce
new file mode 100755
index 000000000..5e65ff5a2
--- /dev/null
+++ b/1208/CH4/EX4.5/Exa5.sce
@@ -0,0 +1,12 @@
+//Exa 5
+clc;
+clear;
+close;
+//given data : 
+InInv=30000;//initial investment in Rs.
+SalvageValue=3000;//in Rs.
+WorkingCapital=6000;//in Rs.
+Life=4;//expected life of the project
+//Average Investment is given by : AvgInv=(InInv-SalvageValue)/2+SalvageValue+WorkingCapital
+AvgInv=(InInv-SalvageValue)/2+SalvageValue+WorkingCapital
+disp(AvgInv,"Average investment of the project is : ")
diff --git a/1208/CH4/EX4.6/Exa6.sce b/1208/CH4/EX4.6/Exa6.sce
new file mode 100755
index 000000000..5d0e51df3
--- /dev/null
+++ b/1208/CH4/EX4.6/Exa6.sce
@@ -0,0 +1,33 @@
+//Exa 6
+clc;
+clear;
+close;
+//given data :
+CostofMac=80000;//in Rs.
+SalvageValue=10000//in Rs.
+//Profits of 1st,2nd,3rd,4th and th years
+P1=20000;//in Rs.
+P2=40000;//in Rs.
+P3=30000;//in Rs.
+P4=15000;//in Rs.
+P5=5000;//in Rs.
+//Total profit before depreciation
+Pbd=P1+P2+P3+P4+P5;//in Rs.
+disp(Pbd,"Total profit before depreciation(in Rs) : ")
+AvgP=Pbd/5;//Average profit per annum
+disp(AvgP,"Average profit per annum(in Rs.) : ")
+//Total Depreciation of the machine
+TotDep=CostofMac-SalvageValue
+disp(TotDep,"Total Depreciation of the machine(in Rs.) : ")
+//Average Depreciation per annum
+AvgD=TotDep/5;
+disp(AvgD,"Average Depreciation per annum(in Rs.) : ")
+//Average annual profit after Depreciation
+AvgPafterDepreciation =AvgP-AvgD;
+disp(AvgPafterDepreciation,"Average annual profit after Depreciation(in Rs.) : ")
+//Return on original investment
+ReturnOnOrg=(AvgPafterDepreciation/CostofMac)*100;//in %
+disp(ReturnOnOrg,"Return on original investment(in %) : ")
+//Return on average investment
+ReturnOnAvgInv=(AvgPafterDepreciation/((CostofMac+SalvageValue)/2))*100;//in %
+disp(ReturnOnAvgInv,"Return on average investment(in %) : ")
+\ No newline at end of file
diff --git a/1208/CH4/EX4.7/Exa7.sce b/1208/CH4/EX4.7/Exa7.sce
new file mode 100755
index 000000000..b660912ca
--- /dev/null
+++ b/1208/CH4/EX4.7/Exa7.sce
@@ -0,0 +1,35 @@
+//Exa 7
+clc;
+clear; 
+close;
+//given data :
+//Initial Investment
+InINv=25000;//in Rs.
+//Scrap Value
+ScrapValue=5000//in Rs.
+//Profit before tax and Depreciation
+P1=5000;//in Rs
+P2=6000;//in Rs
+P3=7000;//in Rs
+P4=8000;//in Rs
+P5=10000;//in Rs
+//Total Profit
+P=P1+P2+P3+P4+P5;//in Rs.
+//Average Profit
+AvgP=P/5;//in Rs.
+//Total Depreciation by straight line method
+D=4000*5;//in Rs.
+//Average Depreciation
+AvgD=D/5;//in Rs
+//Net income before tax
+NetIncomebefTax=AvgP-AvgD;
+//Tax 50%
+Tax=(NetIncomebefTax*50)/100;// in Rs
+//Average annual income after tax and depreciation
+NetInc=NetIncomebefTax-Tax;//in RS.
+//Average Investment
+AvgInv=(InINv+ScrapValue)/2;//in Rs.
+disp(AvgInv,"Average Investment in Rs. : ")
+//Average rate of return on average Investment
+ARR=(NetInc/AvgInv)*100;//in %
+disp(ARR,"Average rate of return on average Investment in % : ")
+\ No newline at end of file
diff --git a/1208/CH4/EX4.8/Exa8.sce b/1208/CH4/EX4.8/Exa8.sce
new file mode 100755
index 000000000..f513c042c
--- /dev/null
+++ b/1208/CH4/EX4.8/Exa8.sce
@@ -0,0 +1,67 @@
+//Exa 8
+clc;
+clear;
+close;
+//given data for machine A : 
+OrgCost=56125;//in Rs.
+//Additional Investment In working capital
+AddInv=5000;//in Rs.
+//Estimated Life
+life=5;//inyears
+//Estimated Salvage value
+Salvage=3000;//in Rs.
+//Average Income Tax Rate
+Trate=60;//in %
+//Average estimated income before tax and Depreciation
+I1=13375;//in Rs.
+I2=15375;//in Rs.
+I3=17375;//in Rs.
+I4=19375;//in Rs.
+I5=21375;//in Rs.
+//Total Income
+I=I1+I2+I3+I4+I5;//in Rs.
+//average income before tax and depreciation
+AvgI=I/5;//in RS.
+//Depreciation by straight line
+D=(OrgCost-Salvage)/5;//in Rs
+//Average Income after Depreciation
+AvgID=AvgI-D;//in Rs.
+//Tax by 60 %
+Tax=(AvgID*60)/100;//in Rs
+//Income after tax and depreciation
+AvgITD=AvgID-Tax;//in Rs
+//Average Rate of Return
+ARR=(AvgITD/((OrgCost+Salvage)/2+AddInv))*100;//in Rs
+disp(ARR,"Average Rate of Return of machine A in % : ")
+
+//given data for machine B : 
+OrgCost=56125;//in Rs.
+//Additional Investment In working capital
+AddInv=6000;//in Rs.
+//Estimated Life
+life=5;//inyears
+//Estimated Salvage value
+Salvage=3000;//in Rs.
+//Average Income Tax Rate
+Trate=60;//in %
+//Average estimated income before tax and Depreciation
+I1=21375;//in Rs.
+I2=19375;//in Rs.
+I3=17375;//in Rs.
+I4=15375;//in Rs.
+I5=13375;//in Rs.
+//Total Income
+I=I1+I2+I3+I4+I5;//in Rs.
+//average income before tax and depreciation
+AvgI=I/5;//in RS.
+//Depreciation by straight line
+D=(OrgCost-Salvage)/5;//in Rs
+//Average Income after Depreciation
+AvgID=AvgI-D;//in Rs.
+//Tax by 60 %
+Tax=(AvgID*60)/100;//in Rs
+//Income after tax and depreciation
+AvgITD=AvgID-Tax;//in Rs
+//Average Rate of Return
+ARR=(AvgITD/((OrgCost+Salvage)/2+AddInv))*100;//in Rs
+disp(ARR,"Average Rate of Return of machine B in % : ")
+\ No newline at end of file
diff --git a/1208/CH4/EX4.9/Exa9.sce b/1208/CH4/EX4.9/Exa9.sce
new file mode 100755
index 000000000..ef1007f00
--- /dev/null
+++ b/1208/CH4/EX4.9/Exa9.sce
@@ -0,0 +1,36 @@
+//Exa 9
+clc;
+clear;
+close;
+//given data :
+//initial cash outflows
+ICO=50000;//in Rs.
+//cash in flows of 1st,2nd,3rd and 4th years
+CIF1=20000;//in Rs.
+CIF2=15000;//in Rs.
+CIF3=25000;//in Rs.
+CIF4=10000;//in Rs.
+//P.V factor at 10% rate of discount
+PV1=0.909;
+PV2=0.826;
+PV3=0.751;
+PV4=0.683;
+//Present value for all cash in flows
+P1=CIF1*PV1;// in Rs
+P2=CIF2*PV2;// in Rs
+P3=CIF3*PV3;// in Rs
+P4=CIF4*PV4;// in Rs
+//Total Present Value
+P=P1+P2+P3+P4;// in Rs
+//Net Present Value
+NPV=P-ICO;// in Rs
+disp(NPV,"Net Present Value is : ")
+//profitabolity index
+PVI=P/ICO;// unitless
+disp(PVI,"Profitability Index of the project as calculated is : ")
+disp("As Profitability Index of the project is greater than 1, the proposal can be accepted.")
+//Net profitability
+NPVI=NPV/ICO;
+disp(NPVI,"Net profitability of the project is : ")
+disp("As Net Profitability Index of the project is +ve, the proposal may be accepted.")
+
author	priyanka	2015-06-24 15:03:17 +0530
committer	priyanka	2015-06-24 15:03:17 +0530
commit	b1f5c3f8d6671b4331cef1dcebdf63b7a43a3a2b (patch)
tree	ab291cffc65280e58ac82470ba63fbcca7805165 /1208/CH4
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