When __________ is greater than zero the project should be accepted.

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?
• A project's profitability index is equal to the ratio of the of a project's future cash flows to the project's .
• You are considering two mutually exclusive investment proposals, project A and project B. B's expected value of net present value is $1,000 less than that for A and A has less dispersion. On the basis of risk and return, you would say that
• A project having a profitability index of ------ is accepted
• In case of Gordon's Model, the MP for zero payout is zero. It means that
• The proposal is accepted if the profitability index is more than -----
• 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
• Consider the below mentioned statements: 1. A debt-equity ratio of 2:1 indicates that for every 1 unit of equity, the company can raise 2 units of debt. 2. The cost of floating a debt is greater than the cost of floating an equity issue. State True or False:
• Which of the following is not a generally accepted approach for Calculation of Cost of Equity?
• Cash discount terms offered by trade creditors never be accepted because