Question
As per management theories it is important to
differentiate between operational effectiveness and strategic positioning. Operational effectiveness means performing similar activities better than competitors. What is strategic positioning? ÂSolution
The point here is that to create real differences and develop competitive edge. Organizations need to position themselves not only simply better than others but also they are different.Â
Which method in capital budgeting considers the time value of money but ignores cash flows beyond payback?
Profitability Index less than 1 indicates:
A project requires an investment of Rs. 10,00,000. It generates annual cash inflows of Rs. 3,00,000 for 5 years. If cost of capital is 10%, should the p...
A firm evaluating two mutually exclusive projects uses NPV and IRR. Project A has higher NPV but lower IRR than Project B. Which project should be selec...
A pharmaceutical company is evaluating a project with a 15-year horizon. The management is concerned about the time value of money and the project's lon...
ABC Ltd operates at 80% capacity producing 16,000 units. The cost per unit is:
• Direct Material ₹50
• Direct Labour ₹20
�...
In the context of working capital assessment, the Tandon Committee recommended that the borrower should bring in a minimum of what percentage of the tot...
Project A has an initial outflow of ₹2,00,000 and annual cash inflows of ₹70,000 for 5 years. What is the Payback Period?
A service shall be a continuous supply of service agreed to he provided continuously or on recurrent basis under a contract when the period of service e...
Which financing strategy balances liquidity risk and cost by matching short-term needs with short-term funds and permanent working capital with long-ter...
