Capital Budgeting "Net Present Value (NPV)" Problems & Solutions

[@sachin0718]

You can calculate PV Factor for discount rate by formula too 1÷(1+r)^n where r is the rate of interest (divide it by 100) n is no.of year....for example 1st year for 10% discount 1÷(1+0.1)^1 =0.909 For second year it will be 1÷(1+0.1)^2=0.826

[@sachin0718]

Thanks for the like mam...

[@hafistk9722]

Scrap value thannal ithe model ano cheyyuka

[@joshuadavid45]

Tq

[@eswaritadi3285]

@@sachin0718 thanq bro...😄

[@SandeepYadav-bj1zl]

Tnx much man

[@carolinenjoka7014]

Thank you madam my exam is next week have been following all your session . Thank you and God bless

[@devikascommercemanagement]

For the same talk, follow this link for better audio and video quality 👍🙌 kzbin.info/aero/PLLhSIFfDZcUWJ21H8KS5sXMpNGtMHPTYt&si=HMj_gOnb-dLySbMu

[@kashyapkocharlakota1013]

Thank you ma'am you are amazing. Tomorrow is my exam. If I really do it well the credit goes to you.

[@devikascommercemanagement]

Wish you good luck 👍

[@srinathvarma8448]

MAMA YOUR EXPLANATION SO CLEARLY N SHORTLY GRABING ANSWER ..IT FENTASTIC THEN MY CLG CLASS

[@s.vishnukoushikreddy6055]

thank you so much mam, you are the reason i have cleared my MEFA paper..!!

[@devikascommercemanagement]

Congratulations. Keep it up

[@nirbananandasahani7636]

Thank you Madam very easy to understanding your teaching method.

[@augustayartah2401]

Aw mam you are so great on your explanations. I really need to know all this things more

[@subhashbabu4968]

Thank u madam. Your method of teaching helps me to understand very easily.

[@zaidzaidaan626]

Mam ...I learn very easily and I got 10 mark question on NPVand ARR

[@vidyasivaraman8010]

THIS VIDEO VERY HELPFUL MAM THANK YOU FOR YOUR EFFORT😊

[@Sadab_Alam]

Thank you so much mam I have seen your many videos I have cleared all my doubt Thank you so much mam

[@lohithalohi599]

Chala baga chepparu thank you so much madam 😊

[@shahbarali2874]

Thanku mam, i understand all the capital budgeting by your explanation, Explanation is very polite even a non commerce student can easily understand it . Love from (Nagpur) Maharashtra

[@devikascommercemanagement]

My pleasure dear Shahbar Ali.. Thank you for your acknowledgement and feedback. Practice well and good luck 👍

[@ashikag2716]

Thanks alot ma'am, loving ur teaching, my exam is next week, u made it simple

[@devikascommercemanagement]

Wish you good luck 👍

[@nakanatharkunaseelan9398]

Thanks madam from sri Lankan student

[@mahishmathiballaladev5080]

Ty so much mam... It will very usefull for MBA exams NPV.....

[@nithishkumar8509]

Tq you madam with in a hour my exam starts

[@devikascommercemanagement]

Wish you good luck 👍

[@ramak8885]

Excellent Mam.. Once again had to experience a Good lesson by luck

[@sainavyanth3834]

Thanks madam tried so much and got no good results o these concepts now I am prepared for the exam .

[@primegraphic210]

Thank you ma'am Very nice explanation

[@anilmayyagamingjone4075]

Tnx mam cover 5th chapter in just 30 minutes

[@modernmonk9974]

Superb Explanation mam🙏🏻🙏🏻🙏🏻✨️♥️

[@devikascommercemanagement]

Follow new video of the same talk with good audio and video quality kzbin.info/aero/PLLhSIFfDZcUWJ21H8KS5sXMpNGtMHPTYt&si=AiBPfv3lFA4Y_94W

[@Prkappuism]

Tqsm madam. Very Helpful Your Teaching..

[@jyotsanasharma3657]

You just made it simple, thank you!!

[@Purelyyou-e6g]

Thank you so much mam for making it so simple and understable ...

[@harshithakatariya3520]

Ur fab the way u teach is osm

[@phanikumarnimishakavi1152]

Very well explained ma'am

[@idiotwritings9312]

Ma'am your video's are soo help

[@gajendranaik9331]

thank you maam it has helped me.

[@kusumkumarisingh5051]

That was so simply explained.loved this video.i watched other videos but couldn't get a thing in my head.

[@hafistk9722]

Scrap value thannal engane aan cheyyuka

[@prabupaul6532]

Very nice Dr.Prabu

[@dragoncollectionladakh7566]

Thank you mam love from Ladakh ♥️♥️🙏

[@devikascommercemanagement]

My pleasure. 🙏

[@mdrajikulislamaupu]

Thank you so much ma'am 💓

[@kesavareddy4576]

Thanks a lot

[@vemulagnaneswar3078]

Mam thank you for giving wonderful explanation. Today I listened capital budgeting topics and problem I really very understand mam and please upload more more topics thank yu mam

[@kishoreurs2874]

Super teaching mam 🙏

[@AnjaliKumari-xs7wg]

mam i dnt know why today ur camera clarity is not gud but ur knowledge is too gud

[@devikascommercemanagement]

This was an old video Follow this new link👍 kzbin.info/aero/PLLhSIFfDZcUWJ21H8KS5sXMpNGtMHPTYt&si=WSm3lToIzB3T70n0

[@saheerasankethathil1964]

Hloo miss its very easy to understand.. i have a qstn if pv factor is not given.. how we can identity which pv factor want to taken

[@GuruSai7]

Thank u Ma'am 🙂🙏🙏

[@kattelanithyasri7727]

Thankyou soo much mam, it helped a lot

[@nishchayedmundpaschal8440]

Thank you Mam

[@devicharan4310]

indebted because of your service

[@thenmozhithenmozhi2310]

Thank you mama

[@maddiralasaiharshith]

Mam really thank you so much.

[@venuprasad3715]

Thank you mam ! You made it very simple and clear explanation

[@vicky6027]

Tq so much

[@shibinss8648]

thank you miss. well understand the topic

[@gowlikarsabitha8777]

thank you so much mam your videos are helping me alot ❤ mam recently you came to our college I missed you to meet 😢 buts thankyousomuchhh mam ❤❤❤❤❤❤ your videos are helping me since my intermediate 😊🫶

[@pranithayekkirala7580]

Thank you mam can you explain without present table values

[@krishnamahisree2271]

mam every thing is outstanding mam ..................my only suggestion is please change the camera mam it is so blury

[@chennaimilitary2514]

Good explanation

[@chintasmedia8009]

Good explanation mam Thank you so much

[@annapoorneshwarikitchen299]

Thank you so much mam ur so good

[@aparnannair0461]

Mamm thank u soo much for ur valuable class

[@dwarakadst3060]

Useful information mam

[@whitehearted]

mam if question say 's find find out 1 payback period 2 average rate of return 3 net present value before tax and dep in one question ....

[@krishnaveni8435]

Can you please explain me mam i used to watch you are vedio s mam mostly while exams time it is very helpful to me

[@VishnuYadav-2397]

Tq u mam for ur clean and clear explanation 😍

[@rinobrinu7428]

Thnk u ma'am ❤️❤️❤️👍

[@saicharanravala1001]

Mam how can we calculate if they given cost of capital is 12%.. Is cost of capital Nd PV values are same?

[@ayankalyan2659]

Thanks mam

[@mirzafahad2383]

Thanku very very much mam

[@gatlagouthami4581]

Thank u mam. Clerly explained.

[@nanabalasatish727]

Medam simple calculation of pv factor

[@sureshpadavala4270]

Tqq mam

[@5d7satyakiran75]

Wonder woman of mefa

[@suresherukala4318]

Nice mam..

[@pulumaddiswathi6858]

Tq uu mam😍

[@venkatcvs8578]

Mam could you please tell me... How to calculate percentage values if they are not given in the problem

[@priyankakomali0]

Using formula 1/(1+r)^n

[@ashokchowdary2541]

Thanks madam

[@devikascommercemanagement]

Welcome and good luck 👍

[@sathyam6991]

What should I do if Working capital is given

[@ganeshvabbalareddi4295]

Plz explain these two topics also madem garu (BEIT and BPS )

[@manojmishra5198]

mam if there is three project for same investemwnt time duration 3,4,5 year for sirst second project so how to calculate which project we will accept

[@johnsonkristin1848]

Good

[@waystrings1590]

Maam there is a mistake in your solution NPV(A) = 55101 - 4000 = 51,101 But you have written 15,101.... I cleared it because some students might get confused about the answer

[@rubelday9708]

If pv factot does not mention in the question so what will i do???but there is given cost of capital is 15 percent..... Is it considered as pv factor mam.....

[@santhoshreddy8583]

Super mam

[@alegeswarysaravanan6886]

Thank U So Much Mam ❤️❤️

[@refreshingpoint2877]

Mam you had tell about this pvf rate from yrsct book but if the rate is mention in exam then what do you try ....none rate of return value has given

[@debashishbramha]

Good Mamm.

[@mohd492]

Mam, i have a question.. how the companies will determine the pv factor % i mean by what basis they can take.. thanks

[@niharikaniha9796]

1/(1+r) ^n

[@Purelyyou-e6g]

Mam when in question scrap value is also given in npv method then how to deduct it or add it ?

[@shubhayansaha9503]

How we get pv factor if the question says "NPV at 8.5% PVF"?

[@sivamirrappalli5042]

Mam give one example if pv factor is just given in percentage....not given in values..then how to find that values using pv factor percentage

[@akkalanaresh5531]

Explain capital structure theories, explain computation of cost of capital

[@sidnaik6375]

a machine costs rs 900000 and it is subject to depreciation rate of 27% per annum by wdv method.what is the pv of tax saving on account of depreciation for a period of 5 years,if tax rate is 17%and discount rate is6%? Ans

[@ManpreetSingh-oz2vc]

Question 2 part a (continued) The company board have approached you to get your professional advice opinion on their expansion plan, which entails opening another firm. Below are the figures for the first one that is planned for in the north of Birmingham location next year. Company policy dictates that any decision should be based on the results of calculating Net Present Value (NPV) of 3 years cash flows using a cost of capital of 12%, Payback Period (PBP) must be less than 3 years, and the Internal Rate of Return (IRR) of the project should provide a 5% cushion in case of increases in inflation or interest rates. The investment consists of £5,000 for the land, building costs of £9,480, and £2,196 for fittings and equipment. The cash flows in year 1 are expected to be: total sales revenue £34,320; the cost of X products sold £8,004; Y stock sold £5,660; staff costs £1,416; light & heat £2,011; other overheads £7,708. The cash flows for the following years are the same, but are expected to increase by 2% inflation each year. Requirements for Question 2 part (b) Using the information above and in accord with the above stated company policy you are required to calculate: i. Net Present Value (NPV) 5 marks ii. Payback period (PBP) and Discounted Payback Period (DPBP) 5 marks iii. Internal Rate of Return 1 marks iv. Based on your calculations do you recommend the investment is made and the opening of the new manufacturing unit? 2 marks v. Critically discuss the limitations of the above project appraisal techniques used and any other recommendations to the board. 2 marks

[@ashlinjohn1591]

From which book these kind of questions are given

[@virenpanchal1209]

Inflow before depreciation & tax consider krna h ya after dep

[@venkateshwara1848]

In exam only project value given how to caluculate this PV factor value

[@subhashmurala1993]

Mam in this when the investment amount is not given when that how u find the npv

[@alsiden9alsiden]

Beautiful

[@trendystatus1520]

Mam, If thare is Discount rate for 10% What will I do?

[@sathyam6991]

U caluculate pv factor of 10% by 1/(1+i) power of n and multiplay with cash inflow

[@Thorfans]

mam how to get PV@ given percentage.

[@rohinig2407]

Mam can you please make vedios on capital structure approaches

[@chinthalapreethi]

Mam can u explain the topic of leverages and how to calculate the 3 types of leverages

[@shruthijooluri9089]

Could u explain abt working capital.

[@eliaspeter4017]

Corporate Finance @ IFM 2018

[@sureshrock2407]

If solvage value is given then what to do mam...

[@sai_charan_goud___]

Mam in exam hall they will allow our calculator?

[@devikascommercemanagement]

Yes, calculator is allowed 👍

[@sai_charan_goud___]

@@devikascommercemanagement tq for reply mam

[@gangalakshmitiriveedhi3921]

Madam, please start caiib exam related topics It will helpful to clear exam.