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

Related MCQs

• In IRR , the cash inflows are assumed to be reinvested in the project at
• Under NPV method, cash flows are assured to be reinvested at
• A project's profitability index is equal to the ratio of the of a project's future cash flows to the project's .
• 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?
• The cash inflows on account of operations are presumed to have been reinvested at the cut off rate in case of
• If risk free rate of return is 8%, Return on market portfolio is 12%, beta = 1.5, then the expected rate of return according to CAPM is equal to
• 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 estimated benefits from a project are expressed as cash flows instead of income flows because:
• The discount rate which equates the present value of cash inflows with the present value of cash out flows is called -------