Q#1:

Calculate using AMORLINC function, First period depreciation:

Cost = 28000
Date purchased = 05/18/2006.
End of the first period =12/8/2006
Salvage value =2100
Period = 1
Depreciation rate =17%

Answer:

Cost 28000
date purchased 2006-05-18
end of the first period 2006-12-08
Salvage value 2100
period 1
depreciation rate 17 %
#MACRO?

Ques #2 Calculate XIRR the internal Rate of return:

1-Jan-07 -55,000
12-Mar-07 15,500
3-Oct-07 7500
1-Feb-08 3500
10-May-08 2700

#MACRO?

Ques #3 If FC=2500Rs, VC= Rs 115, S= Rs 200, Capacity = 250 units.

Calculate the break even point (BEP) in units and break even point (BEP) as percentage of capacity.

FC 2500 Rs
VC 115 Rs
S 200 Rs
 C 250 Units
BEP in units ?
BEP as %age capacity ?

Answer
CM 85
BEP in units 5882.4
BEP as %age capacity 2352.9

Ques#4 Use EXCEL function NPV to find the net present value of an investment, when annual discount rate
Return from first year is Rs. 35000; Return from second year is 45000; Return from third year is 55000

Answer Data Description

15% Annual discount rate
225000 initial cost of investment one year from today
35000 Returns from first year
45000 Returns from second year
55000 Returns from third year
$283,151.86

Ques#5 : Calculate IRR after 4 years and 2 years. With a guess of13%:

Initial cost of a business -77000

Net income for the third year 32000
Net income for the fourth year 25000
Net income for the first year 30000
Net income for the second year 35000
Net income for the fifth year 40000

21%
EP) as percentage of capacity.
ent, when annual discount rate is 15%, initial cost of investment one year from today is 225000.
; Return from third year is 55000

one year from today