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Financial Management (MGT201)

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Replies to This Discussion

dont u see shahbaz is logical

Thanks Ahnaf., shukar ha ksi ko tu ye easy lgi,jub men ny dekhi thi ye, i just pick up calcualtor aur 2 mint b ni lgy hun gy  i solved it, its too much easy.infact ye just ABC ha finance ki, finance tu bht agy ki cheez ha es sy.mje  time value of money ko deal krty 4 years ho gye ab tu sub finger tips py ha es ka.best of luck 4 all of u.

Thank Pakeeza sis, for helping lazy people. Keep it up. We"ll need your guidance for MGT402 also I am sure you would have studied in MSBA. Allah may bless you.

welcome bro.but i had mgt 502 and i can help u in this subject.but i dont know mgt402 is which subject.

1. Find the value of each alternative.
A: Rs. 5,000 every year for next 20 years:
Future value of annuity =constant cash flows x (1+i) n-1/i
FV= 228809.8
Now find Present Value;
PV = F V / (1 + i) n
PV = 49090.74 RS

B: Rs. 90,000 after 12 years:
To Find Out The Present Value:
F V = PV x (1 + i) n
PV = F V / (1 + i) n
PV = 35740.24 RS

2. Based on the value calculated in first part, suggest which alternative is acceptable for Mr. Ali and why?
Mr.Ali must select the option A in which the present value is more value than option B
bird in hand more value two birds inside the bush

Q1 A i try to simplify bc every one is confused about it. it is lecture 7. use two formula to solve, first Fv and than PV

Appreciate sincere efforts Pakeeza for explaining to everyone

Good luck


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