In IRR , the cash inflows are assumed to be reinvested in the project at

Related MCQs

• According to ------ method it is assumed that each of the future cash flows is immediately reinvested in another project at a certain rate of return until the termination of the project
• The cash inflows on account of operations are presumed to have been reinvested at the cut off rate in case of
• 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?
• Under NPV method, cash flows are assured to be reinvested at
• The ratio which is obtained by dividing the present value of future cash inflows by the present value of cash out flows is called
• 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 ----------------
• Cash Inflows from a project include:
• A project costs Rs50,000 and will yield annual cash inflows of Rs20,000 for 5years. Calculate its payback period.
• Which of the following is true regarding the measurement of cash inflows and out flows of a project?