In the _______________, the future value of all cash inflow at the end of time horizon at a particular rate of interest is calculated.

Related MCQs

• According to ------------- approach, cash inflow from assets should match with the cash outflow required to acquire them.
• 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 discount rate which equates the present value of cash inflows with the present value of cash out flows is called -------
• The type of debt whose rate of interest changes according to the changes in the rate of interest payable on gilt edged securities or the prime lending rate of the bank is called
• Intrinsic value of a bond is ______________ vlaue of the all future cash flows
• 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
• 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 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?
• 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 ------------------
• ____________ is the length of time between the firm’s actual cash expenditure and its own cash receipt.