A capital budgeting technique which does not require the computation of cost of capital for decision making purposes is:
If two alternative proposals are such that the acceptance of one shall exclude the possibility of the acceptance of another then such decision making will lead to:
In case a company considers a discounting factor higher than the cost of capital for arriving at present values, the present values of cash inflows will be:
If the cut off rate of a project is greater than IRR, we may:
While evaluating capital investment proposals, time value of money is used in which of the following techniques:
IRR would favor project proposals which have:
Depreciation is included as a cost in which of the following techniques:
Management is considering a ₹ 1,00,000 investment in a project with a 5 year life and no residual value. If the total income from the project is expected to be ₹ 60,000 and recognition is given to the effect of straight line depreciation on the investment, the average rate of return is:
Assume cash outflow equals ₹ 1,20,000 followed by cash inflows of ₹ 25,000 per year for 8 years and a cost of capital of 11%. What is the Net present value?
While evaluating investments, the release of working capital at the end of the project's life should be considered as:
Capital rationing refers to a situation where:
Capital budgeting is done for: