Financial Management-Capital Budgeting Decisions- Risk Analysis [NTA-NET (UGC-NET) Management (& Allied Subjects) (17)]: Questions 1 - 3 of 42
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Question 1
Appeared in Year: 2014
Question MCQ▾
The capital budgeting appraisal criterion that is most appropriate in the situation of capital rationing will be (June paper II)
Choices
Choice (4) | Response | |
---|---|---|
a. | Payback period | |
b. | Net present value | |
c. | Profitability index | |
d. | Internal Rate of Return |
Question 2
Appeared in Year: 2014
Question MCQ▾
Indicate the statement which is not correct:
i. Credit risk is loss on account of default of repayment of loan.
ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.
iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.
iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate. (June Paper II)
Choices
Choice (4) | Response | |
---|---|---|
a. | i and ii | |
b. | ii & iii | |
c. | iii & iv | |
d. | None of the above |
Question 3
Appeared in Year: 2015
Question MCQ▾
Statement-I: In general, the NPV and IRR methods lead to the same acceptance or rejection decision, when a single project is involved.
Statement-II: The inconsistency in ranking of competing projects as per the NPV and IRR methods lies in the implicit assumptions with regard of different rates of returns on re-investment of intermediate cash flows. (December)
Choices
Choice (4) | Response | |
---|---|---|
a. | Statement-I is incorrect, statement-II is correct | |
b. | The statements I and statement II are correct | |
c. | The statements I and statement II are incorrect | |
d. | Statement-I is correct, statement II is incorrect |