Capital Budgeting Paper 26

1

Which of the following methods of valuation provides the most reliable measure of fair value?






2

X opened a recurring account with a bank to deposit Rs. 16000 by the end of each year @ 10% roi. How much he would get at the end of 3rd year?






3

Albert purchased 8%, 3 years bond of Rs. 10 lac, with annual interest payment and face value payable on maturity. The YTM is assumed@ 6%. Calculate the duration and modified duration.






4

A project whose cash flows are more than capital invested for rate of return then net present value will be






5

In mutually exclusive projects, project which is selected for comparison with others must have






6

Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as






7

An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be






8

In capital budgeting, positive net present value results in






9

An uncovered cost at start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating






10

In cash flow analysis, two projects are compared by using common life is classified as






Result

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