The discount rate which equates the present value of cash inflows with the present value of cash out flows is called -------

Related MCQs

• The ratio which is obtained by dividing the present value of future cash inflows by the present value of cash out flows is called
• 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?
• Which of the following is true regarding the measurement of cash inflows and out flows of a project?
• The present value of total cash inflows should be compared with present value of ----------------------
• If the Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is:
• 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?
• The credit policy of Spurling Products is "1.5/10, net 35." At present 30% of the customers take the discount, 62% pay within the net period, and the rest pay within 45 days of invoice. What would receivables be if all customers took the cash discount?
• In Risk-Adjusted Discount Rate method, the normal rate of discount is:
• If the annual cash inflows are constant, the payback period can be computed by dividing cash outlay by ----------------
• The cash inflows on account of operations are presumed to have been reinvested at the cut off rate in case of