In case of divisible projects, which of the following can be used to attain maximum NPV?

Related MCQs

• Two mutually exclusive investment proposals have "scale differences" (i.e., the cost of the projects differ). Ranking these projects on the basis of IRR, NPV, and PI methods give contradictory results.
• To judge the comparative risk of projects having same cost and different NPV which method is used
• To judge the comparative risk of projects having same cost and same NPV which method is used
• Profitability Index, when applied to Divisible Projects, impliedly assumes that:
• In mutually exclusive projects, projects which are selected for comparison must have
• Which of the following is true about NPV?
• Which element of the basic NPV equation is adjusted by the RADR?
• NPV of a proposal, as calculated by RADR real CE Approach will be:
• If NPV for a project is negative, then
• 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?