Question
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 for the next 5 years. The company’s cost of capital is 10%. Calculate the NPV and suggest whether the project should be accepted.
More Capital Budgeting Questions
- 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 ₹18 lakh...
- 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 exce...
- The Net Present Value (NPV) of a project is:
- According to the Trade-off Theory, firms balance:
- If two mutually exclusive projects have conflicting rankings under NPV and IRR, which method should be preferred?
- 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 ₹18 lakh...
- Which of the following appears under the heading 'Reserves & Surplus' in the balance sheet?
- A firm is considering replacing its old machine with a new one. Old machine: Book value = ₹8L, Salvage = ₹2L New machine: Cost = ₹20L, Life = 5 years An...
- Which of the following is/are examples of capital expenditure?
- Which capital budgeting technique ignores the time value of money?
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
- 200 Questions with Detailed Solutions
- Section-wise Coverage (GA, English, Quant & Reasoning)