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SUMMARY TABLE

PLAN 1

YEARS IST 2ND 3RD 4TH 5TH

No of equityshares @ 10 each

1,20,000

1,20,000

1,20,000

1,20,000 1,20,000

ROI 0.11 0.10 0.11 0.15 0.20

EPS 0.68 2.26 2.17 .10 !.0!

"urre#t Ratio 1.5! 1.5! 1.55 1.56 1.6!

PLAN 2

YEARS IST 2ND 3RD 4TH 5TH

No of equityshares @ 10 each

60,000 60,000 60,000 60,000 60,000

ROI0.11 0.12 0.1 0.1$ 0.2

EPS 0.62 1.7 2.1$ 5.02 7.8$

"urre#t Ratio 1.!1 1.1$ 1.0! 1.12 1.7

COMMENTS:

%he co&'a#y is &ore (#a#cia))y )e*era+e i# ')a# 2 , i# ')a# 2 the

co&'a#y is ha*i#+ 85 -et ca'ita). %he EPS is i#creasi#+ i# ')a# 1 at the i#creasi#+ 'ro(ts, ut it is

#ot that &uch co#si-era)e -i/ere#ce fro& ')a# 2. P)a# 1 is a co#ser*ati*e ')a#

%he (#a#cia) )e*era+e he)'s i# i&'ro*i#+ ear#i#+s 'er share.

Retur# o# i#*est&e#t is i#creasi#+ i# ')a# 2.

I# ')a# 1 curre#t ratio is &ore is shos co&'a#ies )iqui-ity

'ositio# is hi+h.

%he ao*e i#for&atio# shos that seco#- ')a# is e#e(cia) forthe co&'a#y.ecause here co&'a#y is +etti#+ &ote retur# o# i#*est&e#t.

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PARK RESORTS PIVATE LIMITED

The present proposal is to establish a low cost company dealing with purchase and sales

of marine products. The project is established under the name and style of CRAB &

CRAB PR!AT" #$T"%.

As it deals with the marine products it will need e'port( import( tra)elling and mainly

the major e'pense will be ice to store the sea foods and water electricity charges. Andfor that purpose we ha)e ta*en two different capital e'penditure plans to compare which

will gi)e long term benefit to the company.

so in first plan we ha)e ta*en +, - debt capital and rest , - e/uity capital & in 0 nd

plan we ha)e ta*en 12- debt capital and rest 32- as e/uity capital.

4rom these information( "P5( R6 & from current ratio we can conclude that the

second plan will be beneficial for the company.

All the anne'ure relating to calculations( Conclusion and comment are enclosed

herewith.

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"OEN%S3

%he co&'a#y is &ore (#a#cia))y )e*era+e i# (rst ')a# as

co&'are- to ')a# (rst ')a# %he EPS is i#creasi#+ i# seco#- ')a# at the i#creasi#+ 'ro(ts.

%he (#a#cia) )e*era+e he)'s i# i&'ro*i#+ ear#i#+s 'er share.

Retur# o# i#*est&e#t is i#creasi#+ i# seco#- ')a#

"urre#t ratio is a)so i#creasi#+ i# seco#- 'a#.

So seco#- ')a# shou)- e chose# y the co&'a#y it i)) e

e#e(cia).