Question
A bag contains 16 black and 18 white balls. One
ball is drawn at random. What is the probability that the ball drawn is white?Solution
Renting of immovable property is
Project requires initial investment of ₹10 lakhs. Annual cash inflows: Year1-₹2L, Year2-₹3L, Year3-₹4L, Year4-₹5L. Cost of capital 10%. NPV? (...
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...
The discount rate that makes the NPV of a project equal to zero is called the:
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...
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 ₹...
Which method in capital budgeting considers the time value of money but ignores cash flows beyond payback?
Which statement is correct regarding Weighted Average Cost of Capital (WACC)?
ABC Ltd. is evaluating a project requiring an initial investment of ₹50 lakhs. The project is expected to generate cash flows of ₹15 lakhs per year ...
The cost of capital is used as a discount rate in:
