The ratio which is obtained by dividing the present value of future cash inflows by the present value of cash out flows is called

Related MCQs

• The discount rate which equates the present value of cash inflows with the present value of cash out flows is called -------
• If the annual cash inflows are constant, the payback period can be computed by dividing cash outlay by ----------------
• The present value of total cash inflows should be compared with present value of ----------------------
• Which of the following is true regarding the measurement of cash inflows and out flows of a project?
• The net cash flows of the project and their present values are as follows Year 1 2 3 4 Net cash flow (Rs) 5100 5100 5100 7100 PVIF @12% 0.893 0.797 0.712 0.636 Present Value (Rs) 4554 4065 3631 4516 The initial investment in the project is Rs12500, What is the NPV of the project?
• Which of the following recognizes risk in capital budgeting analysis by adjusting estimated cash flows and employs risk free rate to discount the adjusted cash flows?
• Under ----- method more than one forecast of the future cash inflows ie. Optimistic, pessimistic and most likely are made
• A project's profitability index is equal to the ratio of the of a project's future cash flows to the project's .
• PI of project is the ratio of present value of inflows to-
• If the present value of cash in flows from a project is Rs4.50 crore, initial outlay is Rs3.75 crore then the net benefit cost ratio is