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Exam Code: IIA-BEAC-MS-P3
Exam Name: BEAC Management System Part 3
Vendor: IIA

60 Questions & Answers
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Mr. Bose runs his Handicrafts business. His net proceeds after deducting both the business expenses and living expenses are Rs. 6,00,000 p.a, which will increase at the rate of 5%. He is a bachelor and don't intend to start any family in future either. Since he don't have any family obligations, he wants to sell off his business after ten years and buy a home in foothills of Himachal.
He expects to sell the business for a good amount and put 40% of the proceeds in buying the house and setting up a retirement corpus with the rest of amount to pay off his post retirement expenses. He is philanthropic by nature and thus want to save the net revenues from his business to form a charitable hospital for poor people living in Himachal. His current living expenses are Rs. 4,00,000 p.a which will increase in line with inflation.
Inflation rate is 3% and interest rate prevailing is 6%.
As a CWM you are required to calculate:

A. Business: Rs 4,61,82,645, House: Rs 2,77,09,587, Hospital: Rs 97,17,000
B. Business: Rs 2,77,09,587, House: Rs 2,77,09,587, Hospital: Rs 80,97,653
C. Business: Rs 3,07,88,430, House: Rs 1,23,15,372, Hospital: Rs 97,17,000
D. Business: Rs 3,69,46,116, House: Rs 1,84,73,058, Hospital: Rs 97,17,000
Answer: C

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