Question
Project requires initial investment of ₹10 lakhs. Annual cash inflows: Year1-₹2L, Year2-₹3L, Year3-₹4L, Year4-₹5L. Cost of capital 10%. NPV? (PV factors: 0.909, 0.826, 0.751, 0.683)
More Capital Budgeting Questions
- Profitability Index less than 1 indicates:
- 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...
- 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...
- In accordance with Ind AS 2, explain how the item should be measured: One of Company's product lines is beauty products, particularly cosmetics such as lip...
- 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...
- The discount rate that makes the NPV of a project equal to zero is called the:
- The cost of capital is used as a discount rate in:
- Project requires initial investment of ₹10 lakhs. Annual cash inflows: Year1-₹2L, Year2-₹3L, Year3-₹4L, Year4-₹5L. Cost of capital 10%. NPV? (PV factors: 0...
- Renting of immovable property is
- Company considers leasing equipment (annual lease ₹12 lakh for 5 years) vs buying at ₹45 lakh financed at 10% loan. Tax rate = 30%. Equipment depreciated s...
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)