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Sunday, July 5, 2015

Protect Your Accounts

Protect Your Accounts

Dear Students,

Your Student ID and password gives you access to your LMS and VU email accounts. If someone else obtains your password which is your personal digital key, he/she can use your account to access your private data, including your personal profile, emails, assignments, MDB, GDB, Quizzes and can alter your secret information to retrieve forgotten password. Further more, he/she may perform illegal activities in your name and will remain undetected, unless you eventually change your password. You are advised to treat your password(s) as confidential information not to share with anybody.  Follow the guidelines below to protect your LMS and VU Email accounts from unauthorized access.

  • You are YOURSELF responsible for the security of your LMS and VU Email passwords and login credentials.
  • Do not share your passwords with anybody.
  • Make separate passwords for LMS and VU Email accounts respectively.
  • Do not use Remember Password feature of internet browser.
  • Change your LMS and VU Email passwords at least once a week and immediately whenever you feel someone might know your password.
  • Do not re-use your old passwords.
  • Passwords should not be based on personal information including name, birthday, address, phone number, etc.
  • Password should be at least 8 characters long, easier for you to remember but harder for someone else to guess. 
  • Password should be a non-dictionary word containing upper and lowercase letters, numbers and special characters.
Contact password@vu.edu.pk for further assistance.
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Wednesday, November 21, 2012


FIN622 Assignment 1 Fall 2012 Solution

Tuesday, November 20, 2012 Edit This
Net Present Value (NPV)
NPV = -Io + CF1 / (1+i)^1 + CF2 / (1+i)^2 + CF3 / (1+i)^3 + CF4 / (1+i)^4 +…….+ ∞
For Alpha:
Io= 20,000
i = initial investment for alpha = 14%
For Beta:
Io= 20,000
i = initial investment for Beta = 12% 
......................................
PV of Future Cash Flows of project ALPHA = 53428+ 63435 + 52956+ 37725
= 207547

PI= 207547/200000

ye calculation apni kr laina...main ny rounded kiya howa hy.... same isi tarah BETA ki b calculate krni hy.....just intial investment ki amount less nahi krni....balky intial investment ko divide krna hy
......................
Net Present Value (NPV)
NPV = -Io + CF1 / (1+i)^1 + CF2 / (1+i)^2 + CF3 / (1+i)^3 + CF4 / (1+i)^4 +…….+ ∞
For Alpha:
Io= 20,000
i = initial investment for alpha = 14%
For Beta:
Io= 20,000
i = initial investment for Beta = 12%
...................... 
Profitability Index (PI):
Profitability Index = PV of Future Net Cash Flows / Initial Investment Required 

...................... 
Net Present Value (NPV)
NPV = -Io + CF1 / (1+i)^1 + CF2 / (1+i)^2 + CF3 / (1+i)^3 + CF4 / (1+i)^4 +…….+ ∞
For Alpha:
Io= 20,000
i = initial investment for alpha = 14%
For Beta:
Io= 20,000
i = initial investment for Beta = 12%

Profitability Index (PI):
Profitability Index = PV of Future Net Cash Flows / Initial Investment Required
Year Project Alpha
Years
End Rs.(000)
FVIF 
12.3%=1/(1.123)^t
PV
PI
-200,000
1.000
-200000
-0.85
1
60,000
1.123
67380
2.83
2
80,000
1.261
100890.32
2.12
3
75,000
1.416
106218.59
2.27
4
60,000
1.590
95426.78128
2.83
Total
75,000
169915.6913
Project Beta
Years
End Rs.(000)
FVIF 
12.3%=1/(1.123)^t
PV
PI
-200,000
1.000
-200000
-0.851
1
55,000
1.123
61765
3.093
2
65,000
1.261
81973.385
2.617
3
70,000
1.416
99137.35069
2.430
4
80,000
1.590
127235.7084
2.126
Total
NPV
170111.4441
PV of Future Cash Flows of project ALPHA = 53428+ 63435 + 52956+ 37725
= 207547

PI= 207547/200000 
...................... 
Answers are
1: Net present values (NPV):
Alpha: NPV = 7545.63
Beta: NPV = 243.8
Profitability index (PI):
Alpha: PI = 1.0377
Beta: PI = 1.0012
2) NPV of Alpha is higher, it is favorable
3) Profitability index of Alpha is higher
4) IRR of Alpha is higher so it is favorable project. 
...................... 
Answer 4:
PROJECT ALPHA
Year End
Project Alpha
IRR
IRR+1
(IRR+1)^T
NPV of Cash Flow
0
-200000
14.00%
1 + 14% = 1.14
(1.14)^0
=
1.000
(200,000.00)
1
60000
14.00%
1 + 14% = 1.14
(1.14)^1
=
1.140
52,631.58
2
80000
14.00%
1 + 14% = 1.14
(1.14)^2
=
1.300
61,557.40
3
75000
14.00%
1 + 14% = 1.14
(1.14)^3
=
1.482
50,622.86
4
60000
14.00%
1 + 14% = 1.14
(1.14)^4
=
1.689
35,524.82
TOTAL NPV
336.66
PROJECT Beta
Year End
Project Alpha
IRR
IRR+1
(IRR+1)^T
NPV of Cash Flow
0
-200000
12.00%
1 + 12% = 1.12
(1.12)^0
=
1.000
(200,000.00)
1
55000
12.00%
1 + 12% = 1.12
(1.12)^1
=
1.120
49,107.14
2
65000
12.00%
1 + 12% = 1.12
(1.12)^2
=
1.254
51,817.60
3
70000
12.00%
1 + 12% = 1.12
(1.12)^3
=
1.405
49,824.62
4
80000
12.00%
1 + 12% = 1.12
(1.12)^4
=
1.574
50,841.45
TOTAL NPV
1,590.81

Using IRR criterion, project Beta IRR is higher than Project Alpha. So, Select Project Beta. Answer 4:
PROJECT ALPHA
Year End
Project Alpha
IRR
IRR+1
(IRR+1)^T
NPV of Cash Flow
0
-200000
14.00%
1 + 14% = 1.14
(1.14)^0
=
1.000
(200,000.00)
1
60000
14.00%
1 + 14% = 1.14
(1.14)^1
=
1.140
52,631.58
2
80000
14.00%
1 + 14% = 1.14
(1.14)^2
=
1.300
61,557.40
3
75000
14.00%
1 + 14% = 1.14
(1.14)^3
=
1.482
50,622.86
4
60000
14.00%
1 + 14% = 1.14
(1.14)^4
=
1.689
35,524.82
TOTAL NPV
336.66
PROJECT Beta
Year End
Project Alpha
IRR
IRR+1
(IRR+1)^T
NPV of Cash Flow
0
-200000
12.00%
1 + 12% = 1.12
(1.12)^0
=
1.000
(200,000.00)
1
55000
12.00%
1 + 12% = 1.12
(1.12)^1
=
1.120
49,107.14
2
65000
12.00%
1 + 12% = 1.12
(1.12)^2
=
1.254
51,817.60
3
70000
12.00%
1 + 12% = 1.12
(1.12)^3
=
1.405
49,824.62
4
80000
12.00%
1 + 12% = 1.12
(1.12)^4
=
1.574
50,841.45
TOTAL NPV
1,590.81

Using IRR criterion, project Beta IRR is higher than Project Alpha. So, Select Project Beta
Posted by No comments:

FIN622 Assignment 1 Fall 2012 Solution

Tuesday, November 20, 2012 Edit This
Net Present Value (NPV)
NPV = -Io + CF1 / (1+i)^1 + CF2 / (1+i)^2 + CF3 / (1+i)^3 + CF4 / (1+i)^4 +…….+ ∞
For Alpha:
Io= 20,000
i = initial investment for alpha = 14%
For Beta:
Io= 20,000
i = initial investment for Beta = 12% 
......................................
PV of Future Cash Flows of project ALPHA = 53428+ 63435 + 52956+ 37725
= 207547

PI= 207547/200000

ye calculation apni kr laina...main ny rounded kiya howa hy.... same isi tarah BETA ki b calculate krni hy.....just intial investment ki amount less nahi krni....balky intial investment ko divide krna hy
......................
Net Present Value (NPV)
NPV = -Io + CF1 / (1+i)^1 + CF2 / (1+i)^2 + CF3 / (1+i)^3 + CF4 / (1+i)^4 +…….+ ∞
For Alpha:
Io= 20,000
i = initial investment for alpha = 14%
For Beta:
Io= 20,000
i = initial investment for Beta = 12%
...................... 
Profitability Index (PI):
Profitability Index = PV of Future Net Cash Flows / Initial Investment Required 

...................... 
Net Present Value (NPV)
NPV = -Io + CF1 / (1+i)^1 + CF2 / (1+i)^2 + CF3 / (1+i)^3 + CF4 / (1+i)^4 +…….+ ∞
For Alpha:
Io= 20,000
i = initial investment for alpha = 14%
For Beta:
Io= 20,000
i = initial investment for Beta = 12%

Profitability Index (PI):
Profitability Index = PV of Future Net Cash Flows / Initial Investment Required
Year Project Alpha
Years
End Rs.(000)
FVIF 
12.3%=1/(1.123)^t
PV
PI
-200,000
1.000
-200000
-0.85
1
60,000
1.123
67380
2.83
2
80,000
1.261
100890.32
2.12
3
75,000
1.416
106218.59
2.27
4
60,000
1.590
95426.78128
2.83
Total
75,000
169915.6913
Project Beta
Years
End Rs.(000)
FVIF 
12.3%=1/(1.123)^t
PV
PI
-200,000
1.000
-200000
-0.851
1
55,000
1.123
61765
3.093
2
65,000
1.261
81973.385
2.617
3
70,000
1.416
99137.35069
2.430
4
80,000
1.590
127235.7084
2.126
Total
NPV
170111.4441
PV of Future Cash Flows of project ALPHA = 53428+ 63435 + 52956+ 37725
= 207547

PI= 207547/200000 
...................... 
Answers are
1: Net present values (NPV):
Alpha: NPV = 7545.63
Beta: NPV = 243.8
Profitability index (PI):
Alpha: PI = 1.0377
Beta: PI = 1.0012
2) NPV of Alpha is higher, it is favorable
3) Profitability index of Alpha is higher
4) IRR of Alpha is higher so it is favorable project. 
...................... 
Answer 4:
PROJECT ALPHA
Year End
Project Alpha
IRR
IRR+1
(IRR+1)^T
NPV of Cash Flow
0
-200000
14.00%
1 + 14% = 1.14
(1.14)^0
=
1.000
(200,000.00)
1
60000
14.00%
1 + 14% = 1.14
(1.14)^1
=
1.140
52,631.58
2
80000
14.00%
1 + 14% = 1.14
(1.14)^2
=
1.300
61,557.40
3
75000
14.00%
1 + 14% = 1.14
(1.14)^3
=
1.482
50,622.86
4
60000
14.00%
1 + 14% = 1.14
(1.14)^4
=
1.689
35,524.82
TOTAL NPV
336.66
PROJECT Beta
Year End
Project Alpha
IRR
IRR+1
(IRR+1)^T
NPV of Cash Flow
0
-200000
12.00%
1 + 12% = 1.12
(1.12)^0
=
1.000
(200,000.00)
1
55000
12.00%
1 + 12% = 1.12
(1.12)^1
=
1.120
49,107.14
2
65000
12.00%
1 + 12% = 1.12
(1.12)^2
=
1.254
51,817.60
3
70000
12.00%
1 + 12% = 1.12
(1.12)^3
=
1.405
49,824.62
4
80000
12.00%
1 + 12% = 1.12
(1.12)^4
=
1.574
50,841.45
TOTAL NPV
1,590.81

Using IRR criterion, project Beta IRR is higher than Project Alpha. So, Select Project Beta. Answer 4:
PROJECT ALPHA
Year End
Project Alpha
IRR
IRR+1
(IRR+1)^T
NPV of Cash Flow
0
-200000
14.00%
1 + 14% = 1.14
(1.14)^0
=
1.000
(200,000.00)
1
60000
14.00%
1 + 14% = 1.14
(1.14)^1
=
1.140
52,631.58
2
80000
14.00%
1 + 14% = 1.14
(1.14)^2
=
1.300
61,557.40
3
75000
14.00%
1 + 14% = 1.14
(1.14)^3
=
1.482
50,622.86
4
60000
14.00%
1 + 14% = 1.14
(1.14)^4
=
1.689
35,524.82
TOTAL NPV
336.66
PROJECT Beta
Year End
Project Alpha
IRR
IRR+1
(IRR+1)^T
NPV of Cash Flow
0
-200000
12.00%
1 + 12% = 1.12
(1.12)^0
=
1.000
(200,000.00)
1
55000
12.00%
1 + 12% = 1.12
(1.12)^1
=
1.120
49,107.14
2
65000
12.00%
1 + 12% = 1.12
(1.12)^2
=
1.254
51,817.60
3
70000
12.00%
1 + 12% = 1.12
(1.12)^3
=
1.405
49,824.62
4
80000
12.00%
1 + 12% = 1.12
(1.12)^4
=
1.574
50,841.45
TOTAL NPV
1,590.81

Using IRR criterion, project Beta IRR is higher than Project Alpha. So, Select Project Beta
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