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.
Cauliflorous bearing habit i.e fruits are borne on trunk and branches, is found in which horticultural crop?
Protection of the wildlife habitat can be done through in-situ and ex-situ conservation methods. Which one of the following is not a site for in-situ me...
Example of C4 weed is
Growing crops and raising live stock to meet family need is called:
Estimates of National Income in India are annually prepared by:
The particle size of "clay" is -
The recommended dose of Nitrogen (kg ha-1) for Rajma is:
A crop sown with another crop to gain some advantage in yield are termed as
"Brown Manuring", a recent approach of weed control which is mostly used in crop of -
As per ISFR, 2021, what is the total forest cover in total geographical area of the country.
