Question
Which sector was highlighted for its rising global
relevance in the fifth edition of “Trade Watch Quarterly”?Solution
India’s automotive sector was the thematic focus of the latest “Trade Watch Quarterly,” with attention to auto components, motorcycles, and tractors export growth.
Project A requires investment of â‚ą10,00,000 with annual cash inflows of â‚ą3,00,000 for 5 years. Cost of capital = 10%. Compute Net Present Value (NPV...
As per Schedule in of the Companies Act, 2013, a Company shall disclose by way of notes additional information regarding aggregate expenditure and incom...
A company is evaluating two mutually exclusive projects, A and B, both requiring an initial investment of â‚ą1,50,00,000. The cost of capital is 10%. Th...
Which of the following is a non-discounting technique of capital budgeting?
If two mutually exclusive projects have conflicting rankings under NPV and IRR, which method should be preferred?
Project X has an initial outflow of â‚ą6,00,000 and is expected to generate cash inflows of â‚ą2,50,000, â‚ą3,00,000, and â‚ą2,00,000 over the next 3 ye...
The cost of capital is used as a discount rate in:
The Internal Rate of Return (IRR) is the discount rate at which:
A project requires an initial investment of â‚ą10,00,000 and is expected to generate cash inflows of â‚ą4,00,000 per annum for 3 years. The Payback Peri...
Company considers leasing equipment (annual lease â‚ą12 lakh for 5 years) vs buying at â‚ą45 lakh financed at 10% loan. Tax rate = 30%. Equipment deprec...
