1)A project costs Rs.16,000.The estimated annual cash inflows during its 3 year life are Rs.8,000, Rs.7,000 and Rs.6,000 respectively.What will be the pay-back period? a) 2 years b) 2.5 years c) 3 years d) 4 years

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1)A project costs Rs.16,000.The estimated annual
cash inflows during its 3 year life are Rs.8,000,
Rs.7,000 and Rs.6,000 respectively.What will be
the pay-back period?a) 2 years b) 2.5
years c) 3 years d) 4 years
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• 2) Cost of a project is Rs.12,000 annual cash
  inflows Rs.2,000 life 8 years cost of capital
  is 10.If the present value of Re.1received
  annually for 8 years at 10 rate is
  5.3349,calculate the present value index.
• 0.50
• b) 0.60
• c) 0.89
• d) 0.75

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• 3) A project which costs Rs.1,20,000 is expected
  to yield total earnings after depreciation and
  tax of Rs.60,000 over 3 years.The scrap value of
  the project after 3 years has been calculated at
  Rs.20,000.Calculate the average return of
• investment.
• a) 10
• b) 20
• c) 30
• d) 25.

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• 4) A project of Rs.20,00,000 yielded annually
  profit of Rs.3,00,000 after depreciation at 12.5
  and is subject to income tax at 50.Calculate
  pay-back period?
• 2years
• b) 3years
• c) 5years
• d) 4years

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• 5)Profit maximization is a
• Short term concept
• b) long term concept
• c)both
• d) none of the above

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• 6)Wealth maximization is a
• Short term concept
• b) long term concept
• c) either a or b
• d) both a b.

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• 7)Criterion for payback period
• Accept PBPgttarget period
• b) period Accept PBPlttarget
• c) Accept PBPtarget period
• d) none of the above

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• 8)Criterion for accounting rate of return
• Accept ARRgttarget rate
• b) Accept ARRlt target rate
• c) Accept ARRtarget rate.
• d) none of the above

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• 9)Criterion for Net Present Value
• a)Accept NPVgt0
• b) Accept NPVlt0
• c) Accept NPV0
• d) none of the above

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• 10)Criterion for IRR(Internal Rate of Return)
• Accept IRRgtCost of capital
• b) Accept IRR ltCost of capital
• c) Accept IRR Cost of capital
• d) none of the above

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• 11)Criterion for benefit cost ratio
• Accept BCRgt1
• b) Accept BCRlt1
• c) Accept BCR1
• d) none of the above

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• 12)Common size statements are
• Financial Statements that depict financial data
  in the form of verticle percentages
• b) Financial Statements that depict financial
  data in the form of horizontal percentages
• c) All financial statements d) none of the above.

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• 13)Horizontal Analysis is
• a)Changes in financial statements
• b) percentage analysis of increase decrease in
  corresponding items in comparative financial
  statements.
• c) Financial statements which depict financial
  data.
• d)none of the above.

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• 14)Fund Flow is
• a) Sources Uses statement
• b) Sources Statement
• c) Uses Statement
• d) none of the above.

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• 15)Economic Income is defined as
• a) Change in wealth
• b) Change in income
• c) Change in profit
• d) none of the above