B4F008

Project A
Capital cost : 15,000
Cash flows(saving Project A Project B

before depreciation
but after taxes)

Project B
15,000

1 year 4000
2 year 4000
3 year 4000
4 year 3000
5 year 2000
6 year 8000

b) What are the limitations of payback method?

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10. A company is considering the purchases of new machine .Two alternative models are

available. Earnings after taxation are expected to be as follows.

(Cash inflows Rs.)

If the total investment of mode! A is Rs. 80000 and model B is Rs. 70000, which
alternative company will select on the basis of ARR of two models?

uncertainty.

. a) What is meant by demand forecasting?

b) Explain
i) Trend projection method.
ii) Delphi method.

. a) What are the uses and limitations of a balance sheet?

b) Distinguish between money market and capital market.

. a) What is foreign direct invest?

b) Distinguish between direct tax and indircct tax.
‏بد بد بد‎

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. Distinguish risk and uncertainty situations. Explain about the decision making under

Q)

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G)
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