Question
Recently RBI raised the repo rate by 50 bps to 3 years
high to 5.9%, what is the current MSF Rate?Solution
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...
Renting of immovable property is
A firm is considering replacing its old machine with a new one.
Old machine: Book value = ₹8L, Salvage = ₹2L
New machine: Cost = ₹20...
The Internal Rate of Return (IRR) is the discount rate at which:
ABC Ltd operates at 80% capacity producing 16,000 units. The cost per unit is:
• Direct Material ₹50
• Direct Labour ₹20
�...
Which method in capital budgeting considers the time value of money but ignores cash flows beyond payback?
Project requires initial investment of ₹10 lakhs. Annual cash inflows: Year1-₹2L, Year2-₹3L, Year3-₹4L, Year4-₹5L. Cost of capital 10%. NPV? (...
Project requires initial investment of ₹10 lakhs. Annual cash inflows: Year1-₹2L, Year2-₹3L, Year3-₹4L, Year4-₹5L. Cost of capital 10%. NPV? (...
Project A has NPV ₹8 lakh, IRR 15%. Project B has NPV ₹6 lakh, IRR 17%. If cost of capital is 12%, and projects are mutually exclusive, which should...
Profitability Index less than 1 indicates:
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