Capital Budgeting and Capital Ratioining Quiz

If PI of the Project A is 1.2 ; Project B is 1.1 ; Project C is 1.4 and Project D is 1.8 then Rank will be as ______

• A,C,B,D

• D,C,A,B

• C,D,B,A

• B,D,C,A

If PI of the Project is 1.2 and Cash outflow is Rs 4 Lakh then cash Inflow is ____

• Rs 4,00,000

• Rs 5,00,000

• Rs 6,00,000

• Rs 4,50,000

If PVCIF is Rs 8,50,000 and PVCOF is Rs 4,50,000 then NPV is ______

• Rs 4,00,000

• Rs 40,000

• Rs 40,00,000

• Rs 13,00,000

Under risk adjusted cut off rate method.

• Higher the risk higher would be discount rate.

• Lower the risk, lower would be the discount rate.

• Both (a) and (b)

• None of the above

___________ is the planning process used to determine whether an organization long term investments

• Capital Rationing

• Capital Budgeting

• Cost of Capital

• Leverage

If the current Yield of government Bond is 5% and the risk is 3% then Risk Adjusted Discounting Rate is _____

• 8%

• 2%

• 11%

• 15%

Probability gives us accurate results if it is ____

• Objective

• Multiplicative

• Adjective

• subjective

In sensitivity Analysis _______

• Most sensitive Variable is found out

• Most insensitive Variable is found out

• sensitivity of human factor is identfied

• None of the above

Formula for Standard deviation is _____

• Squareroot of variance

• square of Variance

• Multiplication with Probability

• Divide with Variance

If Standard deviation is 16 then variance is ____

• 256

• 8

• 4

• 32