Business Finance - Study Mode
[#191] Assertion (A): When two or more investment proposals are mutually exclusive, ranking the proposals on the basis of IRR, NPV, and PI methods may give contradictory results. Reason (R): The contradictory results in the ranking are due to differing dimensions relating to the scale of investments, cash flow patterns, and project lives. Indicate the correct answer.
Correct Answer
(B) (A) is true, (R) is a necessary condition, but not a sufficient condition
[#192] Operating cycle can be shortened by increasing
Correct Answer
(B) duration of credit available
[#193] Match the following. List-I List-II a. Capital budgeting 1. Time adjusted rate of return b. Profitability index 2. Irreversible c. Internal rate of return 3. Benefit/cost d. Capital investment decisions 4. Planning capital expenditure
Correct Answer
(C) a-4, b-3, c-1, d-2
[#194] Which of the following is not the major objectives of the International Monetary Fund?
Correct Answer
(B) Giving loans to countries for the purpose of economic development
[#195] Which of the following assumptions is not covered in Walter's Model of the dividend policy?
Correct Answer
(D) The key variables like EPS and DPS keep on changing