Question
Project X has an initial outflow of ₹6,00,000 and is expected to generate cash inflows of ₹2,50,000, ₹3,00,000, and ₹2,00,000 over the next 3 years. If the cost of capital is 10%, the Net Present Value (NP
- V is (use PV factors @10%: 0.909, 0.826, 0.751):
More Capital Budgeting Questions
- 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...
- 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 financing strategy balances liquidity risk and cost by matching short-term needs with short-term funds and permanent working capital with long-term f...
- The Internal Rate of Return (IRR) is the discount rate at which:
- As per the Union Budget 2024-25, the Long-Term Capital Gains (LTCG) tax rate under sections 112A and 112 has been revised to _____
- 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...
- 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 pharmaceutical company is evaluating a project with a 15-year horizon. The management is concerned about the time value of money and the project's long g...
- What is the shareholder’s total return, if the shareholder has purchased a share when the market price is Rs.50, and sold after a year to Mr. B at Rs.55 an...
- In the context of working capital assessment, the Tandon Committee recommended that the borrower should bring in a minimum of what percentage of the total ...
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)