Question
Which soil covers the largest area in
India?Solution
Alluvial soil covers the largest area in India, making up about 43% of the country's total area
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 ...
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 ₹...
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...
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...
If two mutually exclusive projects have conflicting rankings under NPV and IRR, which method should be preferred?
A firm is considering replacing its old machine with a new one.
Old machine: Book value = ₹8L, Salvage = ₹2L
New machine: Cost = ₹20...
Company considers leasing equipment (annual lease ₹12 lakh for 5 years) vs buying at ₹45 lakh financed at 10% loan. Tax rate = 30%. Equipment deprec...
A telecom company is considering investing in a 4G expansion project with expected irregular cash inflows. The project shows multiple IRRs due to altern...
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...
The cost of capital is used as a discount rate in: