WorksheetsSession 6_How to optimize financial decisions for growth?
Total questions: 16
Worksheet time: 8mins
Discounting technique is used to find out :
Terminal Value
Compounded Value
Present Value
Future Value
Equal Annual Cash Flows occurring at the end of each year for certain period are known as :
Annuity
Perpetuity
Annuity Due
Deferred Payments
Equal annual amounts occurring in the beginning of certain years are known as :
Annuity
Perpetuity
Annuity Due
Deferred Payments.
Present Value of a future cash flow would decrease if :
Discount Rate is reduced
Discount Rate is increased
Time Period is decreased
All of the above
In a Loan Repayment Schedule, the interest amount paid each period :
Remained Constant
Increases
Decreases
None of the above
Capital Budgeting Decisions are based on :
Incremental Profit
Incremental Cash Flows
Incremental Assets
Incremental Capital
Capital Budgeting is a part of :
Investment Decision
Working Capital Management
Marketing Management
Capital Structure
A proposal is not a Capital Budgeting proposal if it :
is related to Fixed Assets
brings long-term benefits
brings short-term benefits only
has very large investment
A project has a Profitability Index of 1.30. What does it mean?
That NPV is less than zero.
That Payback period is more than one year.
That the project returns Rs. 1.30 for every Rs. 1 invested in project.
That IRR is 1.30 times that of the Hurdle Rate
NPV technique is based on:
Discounting Procedure
Compounding Procedure
Averaging Procedure
None of the above
In case of selection of mutually exclusive projects, the rule is:
Only the best one
All the good ones
All Positive NPV projects
None of the above
Which of the following sources of funds has an Implicit Cost of Capital?
Equity Share Capital
Preference Share Capital
Debentures
Retained earnings
Cost of Capital for Government securities is also known as :
Risk-free Rate of Interest
Maximum Rate of Return
Rate of Interest on Fixed Deposits
None of the above
Cost of Capital for Bonds and Debentures is calculated on :
Before-Tax basis
After-Tax basis
Risk-free Rate of Interest basis
None of the above.
Firm's Cost of Capital is the average cost of :
All sources
All borrowings
All share capital
All Bonds & Debentures.
Marginal Cost of capital is the cost of :
Additional Sales
Additional Funds
Additional Interests
None of the above
