Question
In the context of an increasingly competitive global
market, the company’s reliance on outdated technology not only hampers its productivity but also limits it’s ability to respond swiftly to shifts in consumer demand. Find out the error according to the grammar and context of the given sentences. If there is no error, mark option 5 as the answer, i.e. No error. (Ignore the punctuation errors, if any.)Solution
“It’s” should be replaced with the possessive pronoun “Its”; “It’s” is a contraction of “it is”, which does not fit into the structure of the sentence.
Which financing strategy balances liquidity risk and cost by matching short-term needs with short-term funds and permanent working capital with long-ter...
A project requires an initial investment of ₹10,00,000 and is expected to generate cash inflows of ₹4,00,000 per annum for 3 years. The Payback Peri...
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 lon...
Company considers leasing equipment (annual lease ₹12 lakh for 5 years) vs buying at ₹45 lakh financed at 10% loan. Tax rate = 30%. Equipment deprec...
A company is evaluating two mutually exclusive projects, A and B, both requiring an initial investment of ₹1,50,00,000. The cost of capital is 10%. Th...
Which capital budgeting technique ignores the time value of money?
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 com...
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,...
A telecom company is considering investing in a 4G expansion project with expected irregular cash inflows. The project shows multiple IRRs due to altern...
Mutually exclusive projects: A (NPV=₹200, IRR=18%), B (NPV=₹250, IRR=15%). Cost of capital=12%. Which to select?