International financial management

11th
g 12

c
1M

Indian
Rf in India 121 1.12

Required mate on this project is 141 1 14

i Premium oven Rf Of 100 1.78571

i Required mate in us 1.08 1 78571 1.0992 9 921

Yeah Yeard Years years Years

2000000 2500000 3000000 4000000 5000000

1819836 Pulled to P.vr 9 aaf

2069877 1cal taken 9.91
2260102
2742011

3118757
12010583
I Av of all cash Pillows 12010583

Initial Investment now on

Mitu other 1010583

NN V E 1010583 48
E 48507984
248.5
million
 cont 804 4047 40 An fond

500m
1.57 host 560m good 35m
300m
5mx 804 209

Exportwithout opening subsidiary 16 Subsidiary is opened in India

1 5munits Noofunits sell 5min93
No
of units Export
1 Cont 1 Smuts 809 40 conf 5mn 804 204

60m 300m

i Increase in cont 300m 60m 240 m

p.ir
Examoriented
Incremental confa
1.5mg 204 3.5mits 60

30m 210m
240m

Ok 1 red 2 I 1
Fixedcost 1500m
Wrapital 35m
initialPnv 535m
Release 35m
of wt

loaf Incremental 240 240 290 40 240

Fieldart 30 130 30 30 30
Net Income PBM 210 210 210 210 210

Dep 100 100 100 001 o

a
PBT 110 110 110 110 110

thy 351 3851 48.5 38 5 389 1385

PAT 71.5 71 5 71.5 71 5 715
C Dep 100 100 100 100 100

171.5 171.5 1715 171 5 111Th

Py 638.07
124

Present Value of All cash Inflows 638.07

Initial Investment 535
NPV 103.07 i Project is liable
 Inflation notadjusted

Inflation in Africa hot

India 10

Inflation 101 1650 2420 3327.5

Rand
70000 137200 246960
Inflation 409

disted
ablating
Cash Flows in RÉALTERMS 7 Without Adjusting inflation
Cash Flows in NOMINALTERMS 7 After Adjusting inflation

InflationAdjusted
CashFlows

Spot Rand I 6 41 6 Rand

Inflation in 10 1 10 Find Priem 100

Rand 40 f 40
27 2727
 14M End Rand 2 6 2727277 7 6363
299 76363427.27271 9.7190
397 a 123696

449 5 7432

OI 11 met Met Cason

CashFlowe in 50000 1650 2420 3327 5

Cash Flow in Rand 200000 70000 137200 246960

37373 9167 14117 19965

Conversion to E
1 200 007 119 71710719 o
TotalCashFlows E 83333 7517 11697 16637 5 166375
16637 5
20 O

J
iv offainblows
8318751

ADY 11177

i Project is not viable

 Practice MIRR Part

Anflation
Adjusted Cashflows

1109 1.08

5424
0
 pot NC E 16

Inflation E 8 1.08 E prom 100 92594

Inflation NC 97 1 09

i lyn Ford NC E 1.6 f 92591 1 6148

241 Fud NYE 1 6297
34N Find NC E 1 6448

CashFlows In millions
of 11 and I
E 0 72 869 24 2 E 4.6
NY NC 25 are 26 NC 3.8 May 1
Contension
into I 15.625 1.6101 23317 2 24927
E 15.625 4.4791 5 65317 70927
917 842 772
4.1073
254997
54756

NPV 0 5424 Sink NIV is negative

Project is not viable

5
19533
15.65
 headnote 94
To cal mirin
01 11 29 and
Initial Cashflow 15.625 4 4791 65317 70927
10921 7 1195
1.0922
5 3216
19 5338

I MIRIS 1915338 1 250 f in 77ns

15625 modified 9 net in 349
2507 f a
19 5348
75.65910
1 0772 15 64

7.727Pa 257 sum

I MIRR 7.724 1 a

TDS
AI
Transfer Price 10m 487 4800,001000

Expenses

Rent 1500000

Manpower 80 365 10 4007 I 116800000

Admin EYD 1200000 119500000

Profit Before try 2360500000

c fry 7A
2555000
52

REPATRIATION 714 48
 90

15.3062

15m
270

If 15.406m

810 PenGPR
DI Do
Fund Requirement
retof issue axpy 15 m 48
13.54Pa
issue expenses 24
Fund to be raised 15m 15.306m In 201 0710
98 2

4300 Div 277

One GDR 37 lot discount
811
one GDR 81 13.5
do
Itr
f Number GDR to be issued 15.306m 1711.8 0
of
13.5 GDR'S
No of
1.13378

Dividend on one GDR 20 of 10 3 Shame 6 D1

Price
of GDR fatefanfreceived I 810 2 793.8
Now Do Di 6 PerGDN
IF cnn.to
6 v1
1 793.8 PeingGDR 810
Re 20
793.8
i Re 20 7918
438
pe no

i Me 20 Re 20176
pt
20 76

Cost
of GIR to ODDESSA and 2076
IFM Dd Dept 1.2m far

Spot 72
Inflation 81 1.08 mim 1 8
100 9259g
inflation gy 09
lymFwd E 72 9259 72.67 I
247 End 18 73.34 1.9259 73.34 It e
sp
341Fwd E 7402 92591 74.02 i
441 Fwd E 74.71 f 92591 74.71
54m Fwd E 7540 9259 75 40
Revenue 80000its 1007 8000000

a Ic founts 307 I 2400000

1 Fixedcost 5m 500000
1200000
1 Dept 6m
gyms 7
PBT 3900000
1326000
the 341
PAT 2574000

1 Dept 1200000

Cashflow 37,741000
 OR it 2nd 3ʳᵈ 4ᵗʰ 5ᵗʰ
8000000
Initial outflow
1000000
workingcapital
900000
72
1 outflow in 1250047
4400000927

1000000

2000000

WC salvageing 075.40

4300 8 39788
7 Inflow

3774000 3774000
CanFlowin E 3774000 3774000 3774000

Exchangemate 72.67 73.34 74 02 74.71 7540

i Cashflow in 51933.4 51458.96 50986.22 50515.33 50053.05

50986.22 5051573 89841055

NetCashFlows 125000 51937.4 51458.96

926 X 857 X 794 X735 X 681

48090.33 44100
33 4048306 3712877 61181.75

230984 24 Comyn

I NPV 230984 24 125000

105984.24
Since the Niv is positive it is feasible