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 telecom company is considering investing in a 4G expansion project with expected irregular cash inflows. The project shows multiple IRRs due to altern...
Which method in capital budgeting considers the time value of money but ignores cash flows beyond payback?
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,...
Which of the following is/are examples of capital expenditure?
A firm is considering replacing its old machine with a new one.
Old machine: Book value = ₹8L, Salvage = ₹2L
New machine: Cost = ₹20...
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...
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...
In the context of working capital assessment, the Tandon Committee recommended that the borrower should bring in a minimum of what percentage of the tot...
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...
