According to ------------- approach, cash inflow from assets should match with the cash outflow required to acquire them.

Related MCQs

• Which of the following is NOT a cash outflow for the firm?
• In the _______________, the future value of all cash inflow at the end of time horizon at a particular rate of interest is calculated.
• If a project requires Rs.20,000 as initial investment and it will generate an annual inflow of Rs.2,000 for the 20 years, the pay back period will be ------------------
• Book value ( Net assets )= Total Assets - _______________
• In Certainty-equivalent approach, adjusted cash flows are discounted 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 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 discount rate which equates the present value of cash inflows with the present value of cash out flows is called -------
• In Cash Flow Statement, Cash includes________________.
• If the annual cash inflows are constant, the payback period can be computed by dividing cash outlay by ----------------