Raman Ltd. is evaluating a new machine costing ₹60 lakhs with a useful life of 5 years. The expected annual operating cash inflows (after-tax) are ₹...
ABC Ltd. is evaluating two projects. Project A requires ₹50 lakhs investment and offers IRR of 14%. Project B requires ₹40 lakhs and gives IRR of 12...
All of the following are capital receipts, except ________
A firm is considering replacing its old machine with a new one.
Old machine: Book value = ₹8L, Salvage = ₹2L
New machine: Cost = ₹20...
If two mutually exclusive projects have conflicting rankings under NPV and IRR, which method should be preferred?
According to the Trade-off Theory, firms balance:
Mr. Bhandari purchased a car for 50,000, making a down payment of 10,000 and signing a *40,000 bill payable due in 60 days. As a result of this transact...
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 project will be financed with a mix of equity and a concessional government loan carrying interest below market and a partial guarantee fee. The proje...
Which of the following is/are examples of capital expenditure?