A project's profitability index is equal to the ratio of the of a project's future cash flows to the project's .

Related MCQs

• The ratio which is obtained by dividing the present value of future cash inflows by the present value of cash out flows is called
• 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?
• Profitability Index, when applied to Divisible Projects, impliedly assumes that:
• The estimated benefits from a project are expressed as cash flows instead of income flows because:
• 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
• 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 -------
• Ratio Analysis can be used to study liquidity, turnover, profitability etc., of a firm. What does Debt-Equity Ratio help to study?
• 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