Questions and Answers
What is the minimum required IRR for a project to be acceptable?
Firm's cost of capital or opportunity cost
What is the expected annual earnings before depreciation and taxes of the new milling machine?
Tk.2,00,000
What is the depreciation method that will be used if the tax law changes?
Five-year straight-line depreciation
What is the annual labor cost savings of the new machine in Case-2?
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What is the required after-tax return on investment of the plastic manufacturing company?
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What is the primary focus of the payback period method in capital budgeting?
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Which of the following is a limitation of the payback period method?
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According to the payback period decision rule, what should be done if the payback period is less than the standard period?
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What is the payback period for Project A?
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What is the purpose of the standard period in the payback period decision rule?
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What is capital budgeting primarily concerned with?
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What is the payback period defined as?
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What is the term 'capital' referring to in the context of capital budgeting?
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What is the primary goal of capital budgeting?
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What is computed to determine a project's payback period?
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What is the main advantage of the discounted payback period over the ordinary payback period?
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What is the main drawback of the discounted payback period rule?
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What is the goal of the capital budgeting process?
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What does a positive net present value indicate about an investment?
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What is the discounted payback period a measure of?
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What is the purpose of choosing a lower discount rate (LDR) and a higher discount rate (HDR) in the calculation of IRR?
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What is the decision criteria for a project if the IRR is equal to the cost of capital (k)?
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What is the formula used to calculate the IRR of a project using the interpolation method?
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What is the purpose of calculating the net present value (NPV) of a project at different discount rates?
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What should a company do if the IRR of a project is greater than the cost of capital (k)?
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What does a zero NPV signify?
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What is the impact of a positive NPV on the firm's value?
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What is the formula for computing NPV?
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What does the rate of return required by the firm (k) represent?
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What is the decision criteria for NPV?
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What is the primary objective of financial appraisal in a project?
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Which of the following is NOT a part of financial appraisal?
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What is the main purpose of sensitivity analysis in financial appraisal?
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What is the primary focus of cost-volume-profit analysis in financial appraisal?
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Which of the following is a socio-economic aspect of project evaluation?
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What is the primary focus of capital budgeting techniques in financial appraisal?
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Which of the following is NOT a part of financial projection in financial appraisal?
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What is the primary purpose of assessing the cost of the project and means of financing in financial appraisal?
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Which of the following is a consideration in evaluating the national profitability or socio-economic benefits of a project?
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What is the primary focus of working capital requirement assessment in financial appraisal?
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