The discount rate which forces net present values to become zero is classified as

Related MCQs

• 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?
• 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?
• In Risk-Adjusted Discount Rate method, the normal rate of discount is:
• The discount rate which equates the present value of cash inflows with the present value of cash out flows is called -------
• Find the present value of Rs. 1,000 receivable 6 years hence if the rate of discount is 10 percent.
• To increase a given present value, the discount rate should be adjusted
• The discount rate at which two projects have identical is referred to as Fisher's rate of intersection.
• If the Real rate of return is 10% and Inflation s Money Discount Rate is:
• Cash Discount term 3/15, net 40 means