If a company issues 10% Rs 10 preference shares and if the investors require only 8% return on their investment, find the intrinsic value of the share. A project involving Rs 50,000 as initial outlay...

If a company issues 10% Rs 10 preference shares and if the investors require only 8% return on their investment, find the intrinsic value of the share.

A project involving Rs 50,000 as initial outlay generates Rs 20,000 annually. The operating expenses amount to Rs 10,000 and the amount of depreciation is Rs 5,000. The tax rate is 30%. Find out the cash flow after tax (CFAT).