Question
In a certain code language, ‘A + B’ means
‘A is the mother of B’; ‘A − B’ means ‘A is the brother of B’; ‘A × B’ means ‘A is the wife of B’ and ‘A ÷ B’ means ‘A is the father of B’. Based on the above, how is 4 related to 2 if ‘4 + 3 ÷ 2 ÷ 1 − 5’?ÂSolution
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 selec...
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...
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 ₹...
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In accordance with Ind AS 2, explain how the item should be measured:
One of Company's product lines is beauty products, particularly cosmetics s...
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...
If two mutually exclusive projects have conflicting rankings under NPV and IRR, which method should be preferred?
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 ₹...
Which method in capital budgeting considers the time value of money but ignores cash flows beyond payback?
As per the Union Budget 2024-25, the Long-Term Capital Gains (LTCG) tax rate under sections 112A and 112 has been revised to _____