The Real Cashflows must be discounted to get the present value at a rate equal to:

Related MCQs

• The discount rate which equates the present value of cash inflows with the present value of cash out flows is called -------
• What is the value of the tax shield if the value of the firm is $5 million, its value if unlevered would be $4.78 million, and the present value of bankruptcy and agency costs is $360,000?
• If the Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is:
• 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 present value of total cash inflows should be compared with present value of ----------------------
• The net present value is expressed in financial value, where as internal rate of return(IRR) is expressed in ---------------
• Real rate of return is equal to:
• Real Discount Rate is equal to:
• If the Real rate of return is 10% and Inflation s Money Discount Rate is:
• 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?