## Finance calculation - need help

Hi Experts,

1. The XYZ Exports Ltd’s capital structure is as under:

10% Debenture ₹ 2.75 crores
12% Preference shares ₹ 2.25 crores
Equity shares (face value: ₹ 10 per share) ₹ 5 crores
₹ 10.00 crores
(i) ₹100 per debenture redeemable at par has 3% floatation cost and 10 years of maturity. The market price per debenture is ₹ 109.
(ii) ₹ 100 per preference share redeemable at par has 2% floatation cost and 10 years of maturity. The market price per preference share is ₹ 106.
(iii) Equity share has ₹5 floatation cost and market price per share of ₹27. The current dividend is ₹ 2 per share with annual growth of 5%. The firm has a practice of paying all earnings in the form of dividends.
(iv) Corporate Income-tax rate is 35%.
The company is considering two independent projects available for expansion. Each has repeatable in nature as detailed below. The capital structure remains the same

year Project A Project B
0 (99,990,000) (26,400,000)
1 56,461,000 3,102,000
2 37,796,000 3,520,000
3 16,465,000 3,102,000
4 16,465,000 17,160,000
5 7,999,200 16,280,000
6 1,333,200 3,982,000

A. Which project would you recommend under
I. NPV
II. Profitability Index and
III. MIRR? Why?
B. Which is the best tool? Why?