Question
XYZ Ltd. is evaluating a project that requires an
initial investment of ₹10 crore. The expected cash inflows over the next 5 years are uneven. The company uses a discount rate of 10%. The project has a positive NPV of ₹1.5 crore, but the IRR is only marginally above the cost of capital. Meanwhile, another project offers a higher IRR but lower NPV. What should the company prioritize if it wants to maximize shareholder wealth?Solution
NPV directly reflects the value addition to the shareholders’ wealth. Even if IRR is higher for the other project, the project with higher NPV is preferred in value maximization.
I. 24x² - 58x + 23 = 0
II. 20y² + 24y – 65 = 0
Solve both equations I & II and form a new equation III in variable ‘r’ (reduce to lowest possible factor) using roots of equation I and II as per ...
I. 64x2 - 64x + 15 = 0
II. 21y2 - 13y + 2 =0
Solve the quadratic equations and determine the relation between x and y:
Equation 1: x² - 32x + 207 = 0
Equation 2: y² - 51y + 648 = 0
If a and b are the roots of x² + x – 2 = 0, then the quadratic equation in x whose roots are 1/a + 1/b and ab is
In the question, two equations I and II are given. You have to solve both the equations to establish the correct relation between 'p' and 'q' and choose...
I. y/16 = 4/y
II. x3 = (2 ÷ 50) × (2500 ÷ 50) × 42 × (192 ÷ 12)
The equation q2 - 17x + C = 0, has two roots ‘x’ and ‘y’ such that (x – y) = 7. Find an equation which is equal to thrice of the gi...
Solve the quadratic equations and determine the relation between x and y:
Equation 1: 41x² - 191x + 150 = 0
Equation 2: 43y² - 191y + ...
Solve the quadratic equations and determine the relation between x and y:
Equation 1: x² - 24x + 143 = 0
Equation 2: y² - 26y + 165 = 0
