Business Finance - Study Mode
[#431] Statement-I: In the payback period method, the risk of the project is adjusted by lessening the target payback period. Statement-II: Sensitivity analysis helps in the calculation of the net present value of the proposal.
Correct Answer
(A) Statement-I is correct, but statement-II isincorrect
[#432] Which combination of the following two statements (A) and (R) is correct? Assertion (A): The IRR of a project is the discount rate which reducesits NPV to zero. Reason (R): A project is worth accepting if the IRR exceeds the cost of capital.
Correct Answer
(B) Both (A) and (R) are correct
[#433] Match the following: List-I List-II a. Matching approach 1. Dividend Policy b. Structural ratios 2. Inventory Management c. Ordering quantity 3. Financing Working Capital d. Bonus shares 4. Capital Structure
Correct Answer
(C) a-3, b-4, c-2, d-1
[#434] The single European currency, the euro, was adopted by 11 member nations on 1 st January, . . . . . . . .
Correct Answer
(C) 1999
[#435] For a layman, factoring and forfaiting perform the same basic function. Factoring mostly deals with
Correct Answer
(A) Short-term receivables