Sri Venkateswara College of Engineering and

Technology
Department of Management Studies
Model Exam
BA7106 Accounting for Management
Dept/year/sem:MBA/I/I
Mark:100
Date-22/12/15
Time-3 hrs

Part B (5*13
= 65)

Part C (1* 15=15)

16. A firm whose cost of capital is 10% considering two mutually exclusive projects X
and Y. Evaluate the project based on Net Present Value. Comments

Particulars
Investments
Cash flow year 1
Cash flow year 2
Cash flow year 3

Projects X Rs.
70,000
10,000
20,000
30,000

Projects Y Rs.
70,000
50,000
40,000
20,000

Cash flow year 4

Cash flow year 5

45,000
60,000

10,000
10,000