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MCQ's on Capital Budgeting Decisions Part-2 (in Hindi)
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Heena
Believe in Conceptual Learning.

U
Unacademy user
himachal not a district, ponta not a district.. rohru or Jubal not district..
J
mam 11 nd 12 ka answer explain kr dijiye please
mam in q9. ARR me to depreciation less hota h to included kyu aya h
Ravi Enaganti
7 months ago
Suppose when we purchase machinery (initial cost), we subtract salvage value from initial cost but not subtract depreciation.
Ravi Enaganti
7 months ago
Suppose when we purchase machinery (initial cost), we subtract salvage value from initial cost but not subtract depreciation.
S
mam pls explain 11and12 question
hi mam, it would be very helpful for us if u could explain the solutions for practical questions
Heena
a year ago
Sorry for inconvenience , but I can add upto 100 videos in a particular course :)
Yasmeen Begum
a year ago
oh, no problem. i appreatiate the efforts u are keeping to give us a useful content. thank u somuch mam
Heena
a year ago
thankyou so much for appreciation :)
  1. Capital Budgeting Decisions By Heena Malhotra


  2. 9. Depreciation is included as a cost in which of the following techniques, (a) Accounting rate of return (b) Net present value (c) Internal rate of return (d) None of the above 10. Management is considering a 1,00,000 investment in a project with a 5 year life and no residual value . If the total income from the project is expected to be 60,000 and recognition is given to the effect of straight line depreciation on the investment, the average rate of return is (a) 12% (b) 24% (c) 60% (d) 75% By Heena Malhotra


  3. 11. Assume cash outflow equals ? 1,20,000 followed by cash inflows of 25,000 per year for 8 years and a cost of capital of 11%. What is the Net present value? (a) R 38,214) (b) 9,653 (c) 8,653 (d) 38,214 12. What is the Internal rate of return for a project having cash flows of ? 40,000 per 2,26,009? year for 10 years and a cost of (a) 8% (b) 9% (c) 10% (d) 12% By Heena Malhotra


  4. 13. While evaluating investments, the release of working capital at the end of the projects life should be considered as, (a) Cash in flow (b) Cash out flow (c) Having no effect upon the capital budgeting decision (d) None of the above. 14. Capital rationing refers to a situation where, (a) Funds are restricted and the management has to choose from amongst available alternative investments. Funds are unlimited and the management has to decide how to allocate them to suitable projects. (b) c) Very few fessible investment proposals are available with the management (d) None of the above By Heena Malhotra


  5. 15. Capital budgeting is done for (a) Evaluating short term investment decisions. (b) Evaluating medium term investment decisions (c) Evaluating long term investment decisions. (d) None of the above By Heena Malhotra