Energy Management - a Company Invests Rs.10 Lakhs and Completes an Energy Efficiency Project at the Beginning of Year 1 the Firm Is Investing Its Own Money and Expects an Internal Rate of Return Irr of at Least 26%

In: Other Topics

Submitted By casestudyhelp365
Words 730
Pages 3
Need Answer Sheet of this Question paper, contact aravind.banakar@gmail.com www.mbacasestudyanswers.com
ARAVIND – 09901366442 – 09902787224

ENERGY MANAGEMENT

Q.1 : A plant consumes 4,500 tons of furnace oil per year (GCV =10,200 kCal/kg), as well as 43,000 MWh of electricity per year. Draw the pie-chart of percentage share of each type of energy based on consumption in kCal (1 kWh = 860 kCal)

Q2) How much Stream is recuire in a heat exchange to heat 120 kg/ hour of a process fluid From 40o C to 90o C. The specific heat of process fluid is 0.24 kCal/kg oC and the latent heat of steam is 540 kCal/ kg

Q.3

The following table shows the import bill of fossil fuels in million metric tonnes (MMT) and its cost in Crores Rupees over the last eight years.

(i) calculate the average annual percentage increase of fossil fuel imports

(ii) calculate the average annual percentage increase of the import bill

(iii) calculate the average costs for the last eight years, in Rs. Per metric ton of imported fossil fuels.

Q.4

Fuel substitution from a high cost fuel to a low cost fuel in boilers is common to reduce energy bill. For the following situations calculate:

i) annual reduction in energy costs in Crore Rs.

ii) annual change in energy consumption in %. (Calorific value of fuels not required for calculations)

Before substitution:

Steam output = 6 tons/hour

Fuel consumption = 1 ton oil per 13 tons of steam.

Operating hours = 6400 / Year

Fuel costs = Rs.13,000 /ton of oil

Boiler thermal efficiency (yearly average)= 82%

After Substitution:

Steam output = 6 tons/hour

Fuel consumption = 3 tons of waste wood per 13 tons of steam

Fuel costs = Rs.2,000 / ton of waste wood

Boiler thermal efficiency (yearly average) = 74%

Q.5 A company invests Rs.10 lakhs…...

Similar Documents

Financial Management Theory and Practice

...of Corporate Finance and the Financial Environment In a beauty contest for companies, the winner is . . . General Electric. 11 Or at least General Electric is the most admired company in America, according to Fortune magazine’s annual survey. The other top ten finalists are Cisco Systems, WalMart Stores, Southwest Airlines, Microsoft, Home Depot, Berkshire Hathaway, Charles Schwab, Intel, and Dell Computer. What do these companies have that separates them from the rest of the pack? According to more than 4,000 executives, directors, and security analysts, these companies have the highest average scores across eight attributes: (1) innovativeness, (2) quality of management, (3) employee talent, (4) quality of products and services, (5) long-term investment value, (6) financial soundness, (7) social responsibility, and (8) use of corporate assets. These companies also have an incredible focus on using technology to reduce costs, to reduce inventory, and to speed up product delivery. For example, workers at Dell previously touched a computer 130 times during the assembly process but now touch it only 60 times. Using point-of-sale data, Wal-Mart is able to identify and meet surSee http://www.fortune. com for updates on the U.S. prising customer needs, such as bagels in Mexico, smoke detectors in Brazil, and house ranking. Fortune also ranks paint during the winter in Puerto Rico. Many of these companies are changing the way the Global Most Admired. business works by using......

Words: 351447 - Pages: 1406

Financial Management

...|  Options |  Answer |  1. |  The theoretically logical and operationally feasible normative goal for guiding financial decision making is |  1. |  profit maximization |  2 | | |  2. |  wealth maximization | | | |  3. |  dividend maximization | | | |  4. |  sales maximization | | | |  5. |  - | |  1. |  Your company has received a $50,000 loan from an industrial finance company. The annual payments are $6,202.70. If the company is paying 9% interest per year, how many loan payments must the company make? |  1. |  12 |  3 | | |  2. |  19 | | | |  3. |  15 | | | |  4. |  13 | | | |  5. |  - | |  1. |  Which of the following statements is true? |  1. |  With perfect negative correlation, the risk on a portfolio can be zero if an appropriate allocation of funds is made |  1 | | |  2. |  In cases of zero correlations between the assets, risk can be fully eliminated through diversification | | | |  3. |  The degree of risk reduction for a portfolio depends only on the number of securities in the portfolio | | | |  4. |  All of the above | | | |  5. |  - | |  1. |  The present value of a single future sum: |  1. |  depends upon the number of discount periods. |  1 | | |  2. |  increases as the discount rate increases. | | | |  3. |  is generally larger than the future sum. | | | |  4. |  increases as the number of discount periods increases. | | | |  5. |  - | |  1. |  The present value......

Words: 10936 - Pages: 44

Financial Management

...FINANCIAL MANAGEMENT- 12MBA25 FINANCIAL MANAGEMENT 12MBA25 VTU SECOND SEMESTER FINANCIAL MANAGEMENT- 12MBA25 MODULE -1 FINANCIAL MANAGEMENT Financial management is an academic discipline which is concerned with decision-making. This decision is concerned with the size and composition of assets and the level and structure of financing. In order to make right decision, it is necessary to have a clear understanding of the objectives. Such an objective provides a framework for right kind of financial decision making. The objectives are concerned with designing a method of operating the Internal Investment and financing of a firm. There are two widely applied approaches, viz. (a) profit maximization and (b) wealth maximization. The term 'objective' is used in the sense of an object, a goal or decision criterion. The three decisions - Investment decision, financing decision and dividend policy decision are guided by the objective. Therefore, what is relevant - is not the overall objective but an operationally useful criterion: It should also be noted that the term objective provides a normative framework. Therefore, a firm should try to achieve and on policies which should be followed so that certain goals are to be achieved. It should be noted that the firms do not necessarily follow them. Profit Maximization as a Decision Criterion Profit maximization is considered as the goal of financial management. In this approach, actions that Increase profits should be undertaken......

Words: 21079 - Pages: 85

Financial Management: Theory & Practice

... Study Guide Financial Management: Theory & Practice Fourteenth Edition Eugene F. Brigham University of Florida Michael C. Ehrhardt University of Tennessee ________________________________________________________________________________ Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Copyright 2013 Cengage Learning. All Rights Reserved. May not be......

Words: 197028 - Pages: 789

Finance Management

...Volume 1 David Whitehurst UMIST McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−31999−6 Text: Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition Ross et al. This book was printed on recycled paper. Finance http://www.mhhe.com/primis/online/ Copyright ©2003 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 FINA ISBN: 0−390−31999−6 Finance Volume 1 Ross et al. • Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition Front Matter 1 1 33 33 55 83 83 126 158 158 187 231 273 301 301 340 378 408 408 443 481 519 519 553 594 632 664 664 700 734 Preface I. Overview of Corporate Finance 1. Introduction to Corporate Finance 2. Financial Statements, Taxes, and Cash Flow II. Financial Statements and Long−Term Financial Planning 3. Working with Financial Statements 4. Long−Term Financial Planning and Growth III. Valuation of Future Cash Flows 5. Introduction to Valuation: The Time Value of Money 6.......

Words: 479500 - Pages: 1918

Global Trends in Energy Investment

...global trends in sUstainable energy investment 2010 Analysis of Trends and Issues in the Financing of Renewable Energy and Energy Efficiency United nations environment Programme Endorsed by Copyright © United Nations Environment Programme and New Energy Finance, 2010 This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgement of the source is made. UNEP would appreciate receiving a copy of any publication that uses this publication as a source. No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from the United Nations Environment Programme. Disclaimer United Nations Environment Programme: The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations Environment Programme concerning the legal status of any country, territory, city or area or of its authorities, or concerning delimitation of its frontiers or boundaries. Moreover, the views expressed do not necessarily represent the decision or the stated policy of the United Nations Environment Programme, nor does citing of trade names or commercial processes constitute endorsement. Bloomberg New Energy Finance: The information contained in this publication is derived from carefully selected......

Words: 33322 - Pages: 134

Energy

...The Midwest Energy Research Center FINAL REPORT BUSINESS PLAN FOR SOAR ENERGY COOPERATIVE Prepared by Management Consulting Services, Inc. Washington, DC On behalf of The Midwest Energy Research Center Findlay, OH December 2001 Management Consulting Services, Inc. Washington, DC T ABLE OF CONTENTS Abstract ....................................................................................................................................... vi Study Objectives ...................................................................................................................... vii 1. 1.1 1.2 1.3 1.4 2. 2.1 2.2 2.3 2.4 2.5 2.6 3. 3.1 3.4 3.2 3.3 4. 4.1 4.2 4.3 4.4 4.5 5. Introduction...........................................................................................................................1 Restructuring Legislation ....................................................................................................... 1 Renewable Generation in Ohio............................................................................................... 2 SOAR Energy Concept......................................................................................................... 3 Feasibility of SOAR Energy................................................................................................... 5 Market Assessment and Marketing Strategy....................................................................6 Market Size ..............................

Words: 35572 - Pages: 143

Energy Efficiency and Sustainable Development

... Assignment – 1 Kota Praveen Kumar P141018 Introduction and Overview 1. What is Energy Efficiency? Energy Efficiency means “Delivering the same, with less (or more with the same). 2. Importance of Energy Efficiency - What does Energy Efficiency has to offer? • Limit demand growth • Increase energy security • Climate change mitigation • Additional non-energy benefits for economy and society By improving energy efficiency, cost of the energy system needed to power home or Institution or Industry can be reduced. Becoming more energy efficient is an important first step to reduce our impact on the environment.  Energy efficiency is also a non-controversial issue, improving efficiency means encouraging innovation and technology, creating jobs, reducing our dependence on non-renewable resources, and saving money 3. Global Perspective OECD Countries OECD Countries through energy efficiency address the risks of climate change, an increasing number of countries, mainly from the OECD, have embarked on ambitious programmes, with energy efficiency often as the main pillar. Energy efficiency enables countries to alleviate the financial burden of oil imports on their balance of trade and also improves energy supply security [pic][pic] 4. Developing Countries In developing countries the energy efficiency enables a reduction in overall investmentinto energy sector and will help to make the best use of assets to improve the energy access.......

Words: 3077 - Pages: 13

Financial Management Theory and Practice

... Financial Management This page intentionally left blank 12e Financial Management Theory and Practice Eugene F. Brigham University of Florida Michael C. Ehrhardt University of Tennessee Financial Management: Theory and Practice Twelfth Edition Eugene F. Brigham and Michael C. Ehrhardt VP/Editorial Director: Jack W. Calhoun Editorial Assistant: Adele Scholtz Technology Project Manager: Matt McKinney Editor-in-Chief: Alex von Rosenberg Sr. Content Project Manager: Cliff Kallemeyn Art Director: Bethany Casey Executive Editor: Mike Reynolds Marketing Manager: Jason Krall Sr. First Print Buyer: Sandee Milewski Sr. Developmental Editor: Elizabeth Thomson Sr. Marketing Communications Manager: Jim Overly Printer: RR Donnelley & Sons, Willard OH COPYRIGHT © 2008, 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution or information storage and retrieval systems, or in any other manner—without the written permission of the publisher. Library of Congress Control Number: 2007921348 Printed in the United States of America 1 2 3 4 5 09 08 07 06 ISBN-13:......

Words: 557614 - Pages: 2231

Nism Project Finance

...Project Finance Module NATIONAL STOCK EXCHANGE OF INDIA LIMITED Dtp-Sys-9\D:\F\2012\F-902-12-Project_Finance/F-902-12-Project_Finance.indd Test Details: Sr. No. Name of Module Fees (Rs.) Test Duration (in minutes) No. of Questions Maximum Marks Pass Marks (%) Certificate Validity 1 Financial Markets: A Beginners’ Module * 1686 120 60 100 50 5 2 Mutual Funds : A Beginners' Module 1686 120 60 100 50 5 3 Currency Derivatives: A Beginner’s Module 1686 120 60 100 50 5 4 Equity Derivatives: A Beginner’s Module 1686 120 60 100 50 5 5 1686 120 60 100 50 5 1686 120 60 100 50 5 7 Interest Rate Derivatives: A Beginner’s Module Commercial Banking in India: A Beginner’s Module Securities Market (Basic) Module 1686 120 60 100 60 5 8 Capital Market (Dealers) Module * 1686 105 60 100 50 5 9 Derivatives Market (Dealers) Module * 1686 120 60 100 60 3 1686 120 60 100 60 5 1686 120 60 100 60 5 12 FIMMDA-NSE Debt Market (Basic) Module Investment Analysis and Portfolio Management Module Fundamental Analysis Module 1686 120 60 100 60 5 13 Financial Markets (Advanced) Module 1686 120 60 100 60 5 14 Securities Markets (Advanced)......

Words: 33608 - Pages: 135

Financial Management Ed 13

...CV Δ Dps Dt DCF D/E DPS DRIP DRP DSO EAR EBIT EBITDA EPS EVA F FCF FVN FVAN g I I/YR INT IP IPO IRR LP M M/B MIRR MRP MVA n N N(di) NOPAT NOWC NPV P Pc Average collection period American Depository Receipt Annual percentage rate Accounts receivable Beta coefficient, a measure of an asset’s market risk Levered beta Unlevered beta Basic earning power Book value per share Capital Asset Pricing Model Cash conversion cycle Cash flow; CFt is the cash flow in Period t Cash flow per share Conversion ratio Coefficient of variation Difference, or change (uppercase delta) Dividend of preferred stock Dividend in Period t Discounted cash flow Debt-to-equity ratio Dividends per share Dividend reinvestment plan Default risk premium Days sales outstanding Effective annual rate, EFF% Earnings before interest and taxes; net operating income Earnings before interest, taxes, depreciation, and amortization Earnings per share Economic Value Added (1) Fixed operating costs (2) Flotation cost Free cash flow Future value for Year N Future value of an annuity for N years Growth rate in earnings, dividends, and stock prices Interest rate; also denoted by r Interest rate key on some calculators Interest payment in dollars Inflation premium Initial public offering Internal rate of return Liquidity premium (1) Maturity value of a bond (2) Margin (profit margin) Market-to-book ratio Modified Internal Rate of Return Maturity risk premium Market Value Added Number of shares outstanding Calculator key......

Words: 601456 - Pages: 2406

You Know That When Expanding and Investing in Projects Overseas as Acme Plans to, It Is Essential to Understand Such Things as Return on Equity (Roe) and Internal Rate of Return (Irr). Using Internet Sources

...Return on Equity (ROE) and Internal Rate of Return (IRR) are two very important tools which can be used in decision making in expanding and investing in overseas projects. Return on Equity (ROE) tells how much profit company is generating with shareholder's money. ROE is calculated as: ROE = Net Income/Shareholder's equity This net income is income after paying tax and preferred stock dividend but before paying common stock dividend.ROE measures profit generating efficiency of the company. (McClure, 2010) Higher the ROE, better the investment opportunity company is offering. Advantage of using ROE for investment decision is, it is easy to calculate and it tells how much profit company is generating for share holders. Ultimate goal of a company is to create value for shareholders. Thus, ROE is the right measure to find out if company is efficient in generating profit on its equity (and asset) or not. However, ROE is not the absolute indicator of investment value. If value of shareholder's equity falls, ROE will go up. Similarly, if company is taking large write-down, ROE will fall sharply. Share buyback also lowers ROE while there is no change in company's operation. (McClure, 2010) Internal Rate of Return (IRR) is an indicator of yield of an investment.IRR is widely used method in capital budgeting decisions. IRR is the discount rate where total present value of all cash inflows is equal to total present value of all cash outflows. i.e. IRR is the discount rate at......

Words: 634 - Pages: 3

Energy Management - a Plant Consumes 4,500 Tons of Furnace Oil Per Year Gcv =10,200 Kcal Kg as Well as 43,000 Mwh of Electricity Per Year

...09901366442 – 09902787224 ENERGY MANAGEMENT Q.1 : A plant consumes 4,500 tons of furnace oil per year (GCV =10,200 kCal/kg), as well as 43,000 MWh of electricity per year. Draw the pie-chart of percentage share of each type of energy based on consumption in kCal (1 kWh = 860 kCal) Q2) How much Stream is recuire in a heat exchange to heat 120 kg/ hour of a process fluid From 40o C to 90o C. The specific heat of process fluid is 0.24 kCal/kg oC and the latent heat of steam is 540 kCal/ kg Q.3 The following table shows the import bill of fossil fuels in million metric tonnes (MMT) and its cost in Crores Rupees over the last eight years. (i) calculate the average annual percentage increase of fossil fuel imports (ii) calculate the average annual percentage increase of the import bill (iii) calculate the average costs for the last eight years, in Rs. Per metric ton of imported fossil fuels. Q.4 Fuel substitution from a high cost fuel to a low cost fuel in boilers is common to reduce energy bill. For the following situations calculate: i) annual reduction in energy costs in Crore Rs. ii) annual change in energy consumption in %. (Calorific value of fuels not required for calculations) Before substitution: Steam output = 6 tons/hour Fuel consumption = 1 ton oil per 13 tons of steam. Operating hours = 6400 / Year Fuel costs = Rs.13,000 /ton of oil Boiler thermal efficiency (yearly......

Words: 730 - Pages: 3

Energy Management - a Waste Heat Recovery System Can Be Installed in a Furnace Which Will Cost Rs. 7,00,000 to Install This System Is Expected to Have a Useful Life of 6 Years

...09901366442 – 09902787224 ENERGY MANAGEMENT Q.1 : A plant consumes 4,500 tons of furnace oil per year (GCV =10,200 kCal/kg), as well as 43,000 MWh of electricity per year. Draw the pie-chart of percentage share of each type of energy based on consumption in kCal (1 kWh = 860 kCal) Q2) How much Stream is recuire in a heat exchange to heat 120 kg/ hour of a process fluid From 40o C to 90o C. The specific heat of process fluid is 0.24 kCal/kg oC and the latent heat of steam is 540 kCal/ kg Q.3 The following table shows the import bill of fossil fuels in million metric tonnes (MMT) and its cost in Crores Rupees over the last eight years. (i) calculate the average annual percentage increase of fossil fuel imports (ii) calculate the average annual percentage increase of the import bill (iii) calculate the average costs for the last eight years, in Rs. Per metric ton of imported fossil fuels. Q.4 Fuel substitution from a high cost fuel to a low cost fuel in boilers is common to reduce energy bill. For the following situations calculate: i) annual reduction in energy costs in Crore Rs. ii) annual change in energy consumption in %. (Calorific value of fuels not required for calculations) Before substitution: Steam output = 6 tons/hour Fuel consumption = 1 ton oil per 13 tons of steam. Operating hours = 6400 / Year Fuel costs = Rs.13,000 /ton of oil Boiler thermal efficiency (yearly......

Words: 730 - Pages: 3

Oil Company Crisis

...OIL COMPANY CRISIS Managing Structure, Profitability, and Growth Nick Antill and Robert Arnott Oil Company Crisis Managing structure, profitability and growth NICK ANTILL and ROBERT ARNOTT SP 15 Oxford Institute for Energy Studies 2002 The contents of this paper are the authors’ sole responsibility. They do not necessarily represent the views of the Oxford Institute for Energy Studies or any of its Members. Copyright © 2003 Oxford Institute for Energy Studies (Registered Charity, No. 286084) All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior permission of the Oxford Institute for Energy Studies. This publication is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out, or otherwise circulated without the publisher’s consent in any form of binding or cover other than that in which it is published and without similar conditions including this condition being imposed on the subsequent purchaser. ISBN 1-901795-27-6 Cover designed by Clare Hofmann Typeset by Philip Armstrong, Sheffield Printed by Biddles, Guildford CONTENTS List of Figures Acknowledgements 1 2 INTRODUCTION INDUSTRY STRUCTURE 2.1 An Examination of Corporate Structure 2.2 The Urge to Integrate 2.3 A Question of Balance 2.4 Just how Operationally Integrated? 2.5 Are there...

Words: 28798 - Pages: 116