There is a Project, which availed Term Loan of Rs 450 million payable in 5 equal annual instalments (Year 1 to 5). Interest rate charged by the Financial Institution is at the rate of 12.50% per annum & payable annually. Profit After Tax (PAT) for first year is Rs 100 million and the growth rate of PAT is 15 % on a year-to-year basis. Depreciation & Amortisation is Rs 50 million per year on a straight-line method of calculation. Calculate: a. Profit After Tax b. Cash Accrual c. Interest on Term Loan

There is a Project, which availed Term Loan of Rs 450 million payable in 5 equal annual instalments (Year 1 to 5). Interest rate charged by the Financial Institution is at the rate of 12.50% per annum & payable annually. Profit After Tax (PAT) for first year is Rs 100 million and the growth rate of PAT is 15 % on a year-to-year basis. Depreciation & Amortisation is Rs 50 million per year on a straight-line method of calculation. Calculate: a. Profit After Tax b. Cash Accrual c. Interest on Term Loan

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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