Financial Management - Study Mode

[#216] Cash inflows are revenues of project and are represented by
Correct Answer

(D) positive numbers

Explanation

Solution: Cash inflows are revenues of project and are represented by positive numbers.

[#217] Present value of future cash flows is Rs 4150 and an initial cost is Rs 1300 then profitability index will be
Correct Answer

(B) 3.19

[#218] Project whose cash flows are less than capital invested for required rate of return then net present value will be
Correct Answer

(A) negative

Explanation

Solution: Project whose cash flows are less than capital invested for negativerequired rate of return then net present value will be negative.

[#219] A type of project whose cash flows would not depend on each other is classified as
Correct Answer

(B) independent projects

Explanation

Solution: A type of project whose cash flows would not depend on each other is classified as independent projects. A project whose acceptance or rejection is independent of the acceptance or rejection of other projects.

[#220] An operating cash flows is Rs 12000 and gross fixed asset expenditure is Rs 5000 then free cash flow will be
Correct Answer

(B) Rs 7,000.00

Explanation

Solution: Free cash flow = Operating cash flow - Fixed expenditure = 12000 - 5000 = Rs. 7000.