Payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as

Related MCQs

• 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?
• If the annual cash inflows are constant, the payback period can be computed by dividing cash outlay by ----------------
• A project costs Rs50,000 and will yield annual cash inflows of Rs20,000 for 5years. Calculate its payback period.
• A project's profitability index is equal to the ratio of the of a project's future cash flows to the project's .
• The estimated benefits from a project are expressed as cash flows instead of income flows because:
• In Certainty-equivalent approach, adjusted cash flows are discounted at:
• 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
• 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
• Equity shares of phonex Ltd are quoted in the market at Rs17. The dividend expected a year hence is Rs1.50. The expected rate of dividend growth is 8%. The cost of equity capital to the company is