Question
ABC Ltd operates at 80% capacity producing 16,000 units. The cost per unit is: • Direct Material ₹50 • Direct Labour ₹20 • Variable Overheads ₹10 • Fixed Overheads ₹40 (Total ₹8,00,000) Prepare flexible budget for 90% capacity and compute per unit cost.
More Capital Budgeting Questions
- 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 selected...
- Profitability Index less than 1 indicates:
- The rule for nominal accounts is
- Project X requires an initial investment of ₹10,00,000 and is expected to generate cash inflows of ₹3,00,000, ₹4,00,000, ₹5,00,000, and ₹2,00,000 over the ...
- At the end of the accounting year, all the nominal accounts of the ledger book are:
- Project A requires investment of ₹10,00,000 with annual cash inflows of ₹3,00,000 for 5 years. Cost of capital = 10%. Compute Net Present Value (NPV). (PVI...
- 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 proj...
- 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 telecom company is considering investing in a 4G expansion project with expected irregular cash inflows. The project shows multiple IRRs due to alternati...
- The discount rate that makes the NPV of a project equal to zero is called the:
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