Fall 2011

Master of Business Administration-MBA Semester 3 Project Management PM0003 - 2 Credits

(Book ID: 1077)

Assignment Set- 1 (30 Marks)

http://smumbaassignmentssolved.blogspot.com/ Completely Solved Assignments.

Note: Each question carries 10 Marks. Answer all the questions.

Q.1

Describe various types of financial risks.

Q.2

If there is an initial investment of rupees 2000 and 3 years of positive cash flow of

rupees 700 each. The discount rate is 10%. What is the present value of each cash flow.

Year Y1 Y2 Y3 Y4 Q.3

Cash Flow 2000 700 700 700 What is credit risk appraisal? Explain the 5Cs of credit analysis

Fall 2011

Master of Business Administration-MBA Semester 3 Project Management PM0003 - 2 Credits

(Book ID: 1077)

Assignment Set- 1 (30 Marks) Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Write short note on: a. Payback period b. Discounted cash flow Q.2 A firms market value of liability is 400 Rs. And the market value of equity is 600Rs.

Cost of liability is 7% and corporate tax 30% & cost of equity is 15%. What will be the weighted average cost of capital?
Q.3

Total cost of project is 250,000Cr. Expected return of project amount is 42,000 Cr.

What is the shortest payback period?