Guys let me tell you one thing. Our professor is literally giving us the exact same questions in class to solve. Like sir you are really a life savor. I wasn't able to attend my classes this month and had no idea how yo do the questions and tomorrow is my exam. Thank you so much sir🌹🌹🌹
sir most of the times i dont comment on lectures because every teacher doing the same way, but today i got this topic in just video of yours and it was much easier than what my college teacher taught us. Thanks a lot sir🙏
That's an absolutely amazing video! It's pure gold. Personally, I find it difficult to understand and learn from my university lecturers, but when Naresh Sir steps in, everything becomes clear. Big fan Naresh Sir from Thailand 🇹🇭
Absolutely making study soooo simple and easy... Thank you so much sir. Sir I suggest u to start CA CMA FULL COURSES STUDENTS ARE IN NEED OF TEACHER LIKE UU 👍👍👍👍👍
Respected sir , your videos have helped me in passing my graduation2022 w/o attending any class , your explanations are easy to understand , thankyou sir ,keep it up
hello sir tomorrow is my exam and you are my life saviour , you are my role model , i want to be lik you . thank you for everything , will meet you in next exam
pvf calculation : eg. 10 % as per video explanation : 1/1.10 = 0.909 - 1year now suppose if u want to calculate for entire 5 years then just in ur calculator press = button 4 times u will get all value till 5 years. hope its helpful lol .
seriously sir apne bhut achha smjaya sare topics..mene 2 lectures dekhne k bad apka dekha..ye dekhr sare points km time m cover ho gya...thnk u so much sir
Thankyou so much sir, I follow your video and learn lot of lessons in FM and gave the examination today and in 2 days I recovered all syllabus of FM with help of your videos
Sir You are bestest Ever ... I love Your way of Teaching 💖 A lot of Love From Your student of Pakistan Mai ap ki videos sy B.com sy ly kar M.com tk dekh rha thnku
Sir, tomorrow will be my exam and you help me a lot of know each chapter and now I can do any sum, because of you..,from my heart thank you sir. Thank you
same here man :) i m civil engg. and now working with S&P global so this one helped me well to crack interview as data researcher we must understand this terms lol . all engg. now generally moving towards commerce field lol . amortizationg in engg. field lol ..
Sir you are amazing, thank you so so much for all this knowledge you are sharing, you are really creating a great value in society by this. Thank You very much.
Sir You Are Such Experience Teacher who guide me Very Easy Thanks Sir Pleas Tell me about From where did you Gate 10% discounting Rate IN NPV Before PVA.
Sir, Your method of teaching is so good. could you please also use the English language in your teaching so that it would help the people who do not know Hindi. Thanks.
Question 2 part a (continued) The company board have approached you to get your professional advice opinion on their expansion plan, which entails opening another firm. Below are the figures for the first one that is planned for in the north of Birmingham location next year. Company policy dictates that any decision should be based on the results of calculating Net Present Value (NPV) of 3 years cash flows using a cost of capital of 12%, Payback Period (PBP) must be less than 3 years, and the Internal Rate of Return (IRR) of the project should provide a 5% cushion in case of increases in inflation or interest rates. The investment consists of £5,000 for the land, building costs of £9,480, and £2,196 for fittings and equipment. The cash flows in year 1 are expected to be: total sales revenue £34,320; the cost of X products sold £8,004; Y stock sold £5,660; staff costs £1,416; light & heat £2,011; other overheads £7,708. The cash flows for the following years are the same, but are expected to increase by 2% inflation each year. Requirements for Question 2 part (b) Using the information above and in accord with the above stated company policy you are required to calculate: i. Net Present Value (NPV) 5 marks ii. Payback period (PBP) and Discounted Payback Period (DPBP) 5 marks iii. Internal Rate of Return 1 marks iv. Based on your calculations do you recommend the investment is made and the opening of the new manufacturing unit? 2 marks v. Critically discuss the limitations of the above project appraisal techniques used and any other recommendations to the board. 2 marks
Sir...One doubt... In this problem depreciation is not given so u have used formula: depr=investment÷number of years But what if depreciation is given...??
very good teaching method sir but in one place where you get pvf factory colum amount you are not mentioned how can we find amount in pvf factor without table and how can we find amount with the help of calculator?
Sir very very thankyou... Apne ye topic bhut ache s smjhaya ...muje pura smjh aagya hai... thanks alot... 2June 2019... Mne ye dekhi h 3 june 2019 ko mera MBA m FM ka paper hai.. Thanks alot again
sir ji aapke channel se bahut kuchh sika hu thank you so much sir ji ek problem tha..IRR ke liye agar HR LR dekhna pade to pvif table me kaise exact factor choose kare plz reply
THANK YOU SOOOO MUCHHHH SIR. I AM ALWAYS RELIED ON YOUR VIDEOS. KINDLY ADD MORE CONTENT ON MBA FINANCE RELATED TOPICS SIR. IT WILL BE A GREAT HELP SIR.
For the exact value of IRR using scientific calculator* Initial investment=annual worth*((1+irr)^n -1/irr*(1+irr)^n) the value of irr is your answer To calculate the annual worth First, find the present value of all the annual cash inflow Ex. In first-year cash inflow A similarly for subsequent years it is B, C... with a discount rate of 10 % then PV=(A/(1+0.1))+(B/(1+0.1)^2)... so on till last year then needs to annualize the PV by multiplying it with capital recovery factor(CRF) **(* CRF is the reciprocal of PVF)** annual worth = PV*CRF CRF=(r*(1+r)^n/(1+r)^n-1) note in the problem r = 10%
Are u asking about Average Rate of return based on average investment ?? In ARR based on Average investment the formula is (Original investment - scrap) whole divided by 2. Then + working capital + scrap. I didn't watch the full video so don't know exactly what r u asking for 😅 actually Capital budgeting is there in my corporate finance's chapter so I know it..
Koi Btadey, jb CF ki payment ho ya profit monthly or quarterly k base or arha hi tw phir Pvf ka rate kese lengy? Or number of period Lia Hoga? QK Wo tw monthly ya quarterly base pr hojayga..
Sir I have a doubt- In ARR method, while calculating average investment why u have used the formula =(initial investment - scrap value) /2 as bcoz the formula we have in our books is avg. Investment=[(initial investment - scrap value) /2] + scrap value + additional working capital. Sir why didn't you add scrap value while calculating avg. investment? Pls... reply
Hi sir, I like your videos very much & your reaching style is also good. Sir, in this video you have explained that when we are calculating from pay back period method we don't need to calculate the present Value of cash inflows bt in some textbooks present value of cash inflows are also considered & find the answer According to that So answer from your method & from that method is Different plz suggest me which one should I follow
There are two kinds of payback, Discounted payback and non-discounted payback method! When doing the discounted payback, we calculate the present values whereas in the non-discounted ones, we don't.
Initial investment kewal use kare instead of avg invest for computing ARR toh thik h but agar question mai working capital v diya ho toh use v add karna hoga na initial investment mai?
![#1 Cost of Capital [Cost of Debt, Preference Shares, Equity and Retained Earnings] ~ FM](/img/1.gif)
Guys let me tell you one thing. Our professor is literally giving us the exact same questions in class to solve. Like sir you are really a life savor. I wasn't able to attend my classes this month and had no idea how yo do the questions and tomorrow is my exam. Thank you so much sir🌹🌹🌹
Ur not employable when u just learn to pass exams and not to gain knowledge
which textbook is sir using?
@@kundanbachke1441 That's the exact algrithm of Indian education tho...
sir most of the times i dont comment on lectures because every teacher doing the same way, but today i got this topic in just video of yours and it was much easier than what my college teacher taught us. Thanks a lot sir🙏
That's an absolutely amazing video! It's pure gold. Personally, I find it difficult to understand and learn from my university lecturers, but when Naresh Sir steps in, everything becomes clear. Big fan Naresh Sir from Thailand 🇹🇭
He might be the best teacher i have ever seen. Makes difficult Questions seem like nothing .
Sir u are the best teacher ever seen in my life u make learning so easy
Exactly
You are the best teacher
Yes he is so sweet
its all about simplifying concepts.and no other tutor can simplify those concepts like this..hats off sir.
sir raat ke 3 baj rahe hai aur kal exam hai and i found this golden video of yours it should be viral than kulhad pizza
Absolutely making study soooo simple and easy... Thank you so much sir. Sir I suggest u to start CA CMA FULL COURSES STUDENTS ARE IN NEED OF TEACHER LIKE UU 👍👍👍👍👍
Respected sir , your videos have helped me in passing my graduation2022 w/o attending any class , your explanations are easy to understand , thankyou sir ,keep it up
Sir m abhi aapka capital budgeting ka payback or ARR vala video dekh k aaya...
Kl paper h or m y topic 1st tym pad ra hu Mast smjh m aa rha h sir ...
hello sir tomorrow is my exam and you are my life saviour , you are my role model , i want to be lik you . thank you for everything , will meet you in next exam
One of the best teacher for chartered accountancy course👍👍👍
pvf calculation :
eg. 10 % as per video explanation :
1/1.10 = 0.909 - 1year
now suppose if u want to calculate for entire 5 years then just in ur calculator press = button 4 times u will get all value till 5 years.
hope its helpful lol .
Thank you so much bro
Thanks
We are allowed to take pvf table for exam or not?
Thank you so much bro
Please tell me why we have taken 1/1.10. Is 1.10 given in the questions..i didn't understand 🙆
thank u so much sir, u r helping a lot of students, u r doing a great job
I did my 14 marks covering finals solution on the basis of this video. Thank you sir..
Omg 😂it's you 😅 I used to follow you jwla ko friend 😅
Such a easier method thought by sir, Thank you sir it was more helpful for us to study well.
To the point , clear and professional ... Hats off 👏👏
he makes the concepts so easy to understand, idk how he does it but sir thank you.
Sir you are great becoz of u I had practice 77 questions in this chpt...
U mad it so simple to me..
Thank u sir😊
Helped me on my midterm, watching again for finals. Bless you Mr Naresh.
Can you tell me from where we got Discount Rate10% IN NPV
You should be a an Ambassador of India Sir❤
seriously sir apne bhut achha smjaya sare topics..mene 2 lectures dekhne k bad apka dekha..ye dekhr sare points km time m cover ho gya...thnk u so much sir
very nicely explained.thank you so much sir💐
Thankyou so much sir, I follow your video and learn lot of lessons in FM and gave the examination today and in 2 days I recovered all syllabus of FM with help of your videos
Everyone must watch this video if you clear your all doubts ☺ thnqq sir
Sir, you are a blessing in disguise for me. Got an exam tomorrow. It was so much of help. Thank you. 😇
Pvf nikalta kaise ye hava mai kar raha hau baki acha h
Mera kal exam hai aur mujhe literally pata bhi nhi chapter ka naam kya hai
@@mriganksingh2283 mera bhi 🥲
@@Chalekhane all the best bro 🙌
Meri bhi kal exam he apki kitne mark aye😫😝😂
Sir You are bestest Ever
...
I love Your way of Teaching 💖
A lot of Love From Your student of Pakistan
Mai ap ki videos sy B.com sy ly kar M.com tk dekh rha thnku
Sir, tomorrow will be my exam and you help me a lot of know each chapter and now I can do any sum, because of you..,from my heart thank you sir. Thank you
Thanks and Best of Luck..
Superb explanations sir👌 because of you I learned the concept of IRR and PI. Thank you so much Sir
Thanks a lot sir, you are great, I have my exam tomorrow and needed this for revision.😊
Being from engineering background you made my finance easy. Thank you :)
same here man :) i m civil engg. and now working with S&P global so this one helped me well to crack interview as data researcher we must understand this terms lol . all engg. now generally moving towards commerce field lol . amortizationg in engg. field lol ..
@@hindu8095 haha...True that....I am also planning to enter in finance field...would like to know how you got into it?
Thanku sir . For so easy explaination .. wasted my 1 hr on different vedios .. finally landed to yours . Now the convept is clear . Thanks alot
Sir you are amazing, thank you so so much for all this knowledge you are sharing, you are really creating a great value in society by this. Thank You very much.
Sir You Are Such Experience Teacher who guide me Very Easy
Thanks Sir
Pleas Tell me about From where did you Gate 10% discounting Rate IN NPV Before PVA.
tabish gull yess...
Sir, Your method of teaching is so good. could you please also use the English language in your teaching so that it would help the people who do not know Hindi. Thanks.
It is great learning with your sir , thanks a LOT SIR
You are the besttt sir, jis question me 1-2 ghnte lg jate h, usse aap bass 5 min me smjha dete h🥹💖
❤❤
Nice way of teaching sir 👍🏻👍🏻
Thank you so much😊
IRR calculation mein koi bhi do rates par NPV le sakte hai jo positive aur negative ho ya phir dono rates consecutive hone chhaiye ?
Question 2 part a (continued)
The company board have approached you to get your professional advice opinion on their expansion plan, which entails opening another firm. Below are the figures for the first one that is planned for in the north of Birmingham location next year.
Company policy dictates that any decision should be based on the results of calculating Net Present Value (NPV) of 3 years cash flows using a cost of capital of 12%, Payback Period (PBP) must be less than 3 years, and the Internal Rate of Return (IRR) of the project should provide a 5% cushion in case of increases in inflation or interest rates.
The investment consists of £5,000 for the land, building costs of £9,480, and £2,196 for fittings and equipment.
The cash flows in year 1 are expected to be: total sales revenue £34,320; the cost of X products sold £8,004; Y stock sold £5,660; staff costs £1,416; light & heat £2,011; other overheads £7,708. The cash flows for the following years are the same, but are expected to increase by 2% inflation each year.
Requirements for Question 2 part (b)
Using the information above and in accord with the above stated company policy you are required to calculate:
i. Net Present Value (NPV) 5 marks
ii. Payback period (PBP) and Discounted Payback Period (DPBP) 5 marks
iii. Internal Rate of Return 1 marks
iv. Based on your calculations do you recommend the investment is made and the opening of the new manufacturing unit? 2 marks
v. Critically discuss the limitations of the above project appraisal techniques used and any other recommendations to the board. 2 marks
Thank you, sir and Happy New Year. 😊
.
..
...
Sir...One doubt...
In this problem depreciation is not given so u have used formula: depr=investment÷number of years
But what if depreciation is given...??
Which writer's book is best for capital budgeting techniques for numerical plz mention?
Sir u r making finance so much easy....thnks u sir for such amazing experience.
very good teaching method sir but in one place where you get pvf factory colum amount you are not mentioned how can we find amount in pvf factor without table and how can we find amount with the help of calculator?
The way you are teaching is really great. Thank you so much
Sir aap jesa koi nhi padha skta... really very helpful thank you sir
Cma chander juneja
According to what book I studied, in ARR, for computation of NI/2, it will "Investment-scrap" not the "Investment+scrap".
Thank you sir
Yes this is correct
Sir very very thankyou...
Apne ye topic bhut ache s smjhaya ...muje pura smjh aagya hai... thanks alot...
2June 2019... Mne ye dekhi h
3 june 2019 ko mera MBA m FM ka paper hai..
Thanks alot again
Thank you so much sir for teaching in detail each and every part so well . Amazing sir 👏🏻.. thank you so so much sir . You are really Great 👍🏻 👌 🙏
yeh konsi book follow kr rahay ha?
@@ijazahmed8054 fundamentals of financial management by Dr. R P Rustagi
sir ji aapke channel se bahut kuchh sika hu thank you so much sir ji ek problem tha..IRR ke liye agar HR LR dekhna pade to pvif table me kaise exact factor choose kare plz reply
Thanku naresh sir explained so well in easy way
It was very helpful, the only thing which was missing in the lecture is "What answer is indicating"
Sir , I have a question,why interest on debt is taxed for calculation of CFAT ,since as we know interest is not taxed in general?
Thank you so much sir...
Please explain discounted payback method..
Wonderful way of teaching sir....... Respect from Pakistan
Superb thing - yeh I am confused that what do these value mean ?? Also if I should go ajead with investment or not ??
Very nice sir😊
Very helpful, thanks 😊
Too good your teaching sir but aap kis book se study karate ho sir
Nice sir ur class is better than our sirs direct class in clg
Tum bhaut acha kaam karta hai sir.
I am from pak. Sir you did the amazing job
THANK YOU SOOOO MUCHHHH SIR. I AM ALWAYS RELIED ON YOUR VIDEOS. KINDLY ADD MORE CONTENT ON MBA FINANCE RELATED TOPICS SIR. IT WILL BE A GREAT HELP SIR.
In IRR calculation first u said to take out the diff btw positive n negative but afterwards u add both the values
Such an awesome explanation sir.
Thanks a lot for this video. This single problem gives lots of learning.
Sir in this problem calculation of depreciation is in slm method
What if there is web method??
Thanks sir this vedio help me alot aaj pheli baar shmjh aaya IRR or ARR kese niklte hai
Sir pvf ratio question me given hoti hai ya nikalte hen aur ye kesy ati hai?aur internal rate of return ka koi aur method b hai? Waiting your kind ans
Sir in avr rate of return formula...when salvage is zero why do we divide initial investment by 2...please tell sir
Love your teachings skill sir ❤❤❤
thank you sir for all the explanations💌
Sir from which book you're solving questions?
For the exact value of IRR using scientific calculator*
Initial investment=annual worth*((1+irr)^n -1/irr*(1+irr)^n) the value of irr is your answer
To calculate the annual worth
First, find the present value of all the annual cash inflow
Ex. In first-year cash inflow A similarly for subsequent years it is B, C... with a discount rate of 10 %
then PV=(A/(1+0.1))+(B/(1+0.1)^2)... so on till last year
then needs to annualize the PV by multiplying it with capital recovery factor(CRF)
**(* CRF is the reciprocal of PVF)**
annual worth = PV*CRF
CRF=(r*(1+r)^n/(1+r)^n-1) note in the problem r = 10%
Sir meri hope aapne lose hone nhi di
Confusion the mujhe is topic ko le kr ab nhi sukriya aapka aur aapke efforts ka ..
Awesome sir …please can you do more videos on FM very helpful
Sir what about when cash inflows are equal.....how do we calculate NPV and IRR then?
Thank you so much Sir for pay back period method explanation is 100%
Discount rate opportunity cost mein difference karke they're calculating positive ve n negative npv values for irr
I passed my 12th, fy sy ty and now watching sir’s video while im pursuing MBA
Hello Sir,
Didn't understand average investment.... Plz help to understand why should scrap value come in thid calculation...
We are blessed to have a teacher like you Guru ji.🙏
Aapka bahut bahut dhanyawad...♥️
nice teaching method
thank you sir. useful for my M.phil exam
Sir one question is there that scrap value is always added in investment or is it subtracted from investment??
Are u asking about Average Rate of return based on average investment ?? In ARR based on Average investment the formula is (Original investment - scrap) whole divided by 2. Then + working capital + scrap.
I didn't watch the full video so don't know exactly what r u asking for 😅 actually Capital budgeting is there in my corporate finance's chapter so I know it..
🙏🙏
Koi Btadey, jb CF ki payment ho ya profit monthly or quarterly k base or arha hi tw phir Pvf ka rate kese lengy? Or number of period Lia Hoga? QK Wo tw monthly ya quarterly base pr hojayga..
Thanks Sir,......
Degree jb bhi dekhunga, yaad rahega ki ap n hote to...wo degree nhi hoti🙏🙏🙏🙏
Ap bhut sahi padate ho
thanks for all
Thank god I found this channel. 🙏🏻
Sir you efforts really gave fruits...
I request you to public your bank details so that we can contribute as per our capacity 😊
Which book author should i purchase for financial management??
Good explanation,sir please write in big words,because it is not clearly visible.its request.complete theoretical portion also.
Sir I have a doubt-
In ARR method, while calculating average investment why u have used the formula =(initial investment - scrap value) /2 as bcoz the formula we have in our books is avg. Investment=[(initial investment - scrap value) /2] + scrap value + additional working capital.
Sir why didn't you add scrap value while calculating avg. investment?
Pls... reply
Because there is no scrap value in above problem
Hi sir, I like your videos very much & your reaching style is also good. Sir, in this video you have explained that when we are calculating from pay back period method we don't need to calculate the present Value of cash inflows bt in some textbooks present value of cash inflows are also considered & find the answer According to that
So answer from your method & from that method is Different plz suggest me which one should I follow
There are two kinds of payback,
Discounted payback and non-discounted payback method!
When doing the discounted payback, we calculate the present values whereas in the non-discounted ones, we don't.
Tq sir very useful fr non class attening student
Sir agar intial investmwnt -2000 hai
1 year 0
2 year 0
3 year 0
4 year 6000
Tu is iska NPV 5 % rate kaisay calculate karay gay ?
Bahut aacha lecture Tha sir...
...Sara ka Sara doubt clear hogaya
ty..
Very nice video
Initial investment kewal use kare instead of avg invest for computing ARR toh thik h but agar question mai working capital v diya ho toh use v add karna hoga na initial investment mai?