A firm is about to undertake a project and has compu10% 130 15% 50 20% -50 What is the approximate IRR of this project? A 20% B 17.5% C 15% D 22.5%ted the NPV of the project using a variety of discount rates: Discount Rate used NPV

A firm is about to undertake a project and has computed the NPV of the project using a

variety of discount rates: 

Discount Rate used NPV

10% 130 

15% 50 

20% -50

 What is the approximate IRR of this project? 

A 20% 

B 17.5% 

C 15% 

D 22.5%
by

1 Answer

Answer :

B 17.5%
by

Related questions

Which of the following statements is incorrect regarding a normal project? A. If the NPV of a project is greater than 0, then its PI will exceed 1. B. If the IRR of a project is 8%, its NPV, using a discount rate, k, greater than 8%, will be less than 0.C. If the PI of a project equals 0, then the project's initial cash outflow equals the PV of its cash flows. D. If the IRR of a project is greater than the discount rate, k, then its PI will be greater than 1.

Description : Which of the following statements is incorrect regarding a normal project? A. If the NPV of a project is greater than 0, then its PI will exceed 1. B. If the IRR of a project is 8%, its NPV, using ... the IRR of a project is greater than the discount rate, k, then its PI will be greater than 1.

Last Answer : D. If the IRR of a project is greater than the discount rate, k, then its PI will be greater than 1.

Which of the following is true? A. Discounted cash flow analysis is the least precise of the cash flow techniques, because it does not consider the time value of money. B. NPV is the least precise of the cash flow analysis techniques, because it assumes reinvestment at the discount rate. C. Payback period is the least precise of the cash flow analysis techniques, because it does not consider the time value of money. D. IRR is the least precise of the cash flow analysis techniques, because it assumes reinvestment at the cost of capital.

Description : Which of the following is true?  A. Discounted cash flow analysis is the least precise of the cash flow techniques, because  it does not consider the time value of money. B. NPV is ... least precise of the cash flow analysis techniques, because it assumes  reinvestment at the cost of capital.

Last Answer : C. Payback period is the least precise of the cash flow analysis techniques, because it  does not consider the time value of money.

Which of the following is true regarding IRR?A. IRR assumes reinvestment at the cost of capital. B. IRR is the discount rate when NPV is greater than zero. C. IRR is a constrained optimization method. D. IRR is the discount rate when NPV is equal to zero.

Description : Which of the following is true regarding IRR? A. IRR assumes reinvestment at the cost of capital. B. IRR is the discount rate when NPV is greater than zero. C. IRR is a constrained optimization method. D. IRR is the discount rate when NPV is equal to zero.

Last Answer : D. IRR is the discount rate when NPV is equal to zero.

When operating under a single-period capital-rationing constraint, you may first want to try selecting projects by descending order of their in order to give yourself the best chance to select the mix of projects that adds most to firm value. A. profitability index (PI) B. net present value (NPV) C. internal rate of return (IRR) D. payback period (PBP)

Description : When operating under a single-period capital-rationing constraint, you may first want to try selecting projects by descending order of their in order to give yourself the best chance to select the mix of ... net present value (NPV) C. internal rate of return (IRR) D. payback period (PBP)

Last Answer : B. net present value (NPV)

When operating under a single-period capital-rationing constraint, you may first want to try selecting projects by descending order of their in order to give yourself the best chance to select the mix of projects that adds most to firm value. A. profitability index (PI) B. net present value (NPV) C. internal rate of return (IRR) D. payback period (PBP)

Description : When operating under a single-period capital-rationing constraint, you may first want to try selecting projects by descending order of their in order to give yourself the best chance to select the mix of ... net present value (NPV) C. internal rate of return (IRR) D. payback period (PBP)

Last Answer : B. net present value (NPV)

A project has a Profitability Index of 1.30. What does it mean? A.The NPV is less than zero B.The payback period is more than one year C.That the project returns Rs 1.30 for every Re 1 invested in the project D.That IRR is 1.30 times that of the Hurdle Rate

Description : A project has a Profitability Index of 1.30. What does it mean?  A.The NPV is less than zero B.The payback period is more than one year  C.That the project returns Rs 1.30 for every Re 1 invested in the project  D.That IRR is 1.30 times that of the Hurdle Rate

Last Answer : C.That the project returns Rs 1.30 for every Re 1 invested in the project

A company is considering investing surplus funds in a project. Calculate the NPV at 10 % discount rate for the following data Project-A Year 0- (100) Year 1-100 Year 2-100 A. 73.5 B. 173.5 C. 273.5 D.100

Description : A company is considering investing surplus funds in a project. Calculate the NPV at  10 % discount rate for the following data  Project-A Year 0- (100) Year 1-100 Year 2-100  A. 73.5  B. 173.5  C. 273.5  D.100

Last Answer : A. 73.5

A Firm is considering undertaking a project that would yield annual profits (after depreciation) of Rs 68,000 for 5 years. The initial outlay of the project would be Rs 800,000 and the project's assets would have a residual value of Rs 50,000 at the end of the project. What would be the accounting rate of return for this project? A 16% B 8.5% C 8.0% D 9.1%

Description : A Firm is considering undertaking a project that would yield annual profits (after  depreciation) of Rs 68,000 for 5 years. The initial outlay of the project would be Rs  800,000 and the project's assets would have ... accounting rate of return for this project?  A 16%  B 8.5%  C 8.0%  D 9.1%

Last Answer : A 16%

A article is listed at Rs. 2000 and a discount of 20% is offered on the list price .What additional discount must be offered to the customer bring the net price to Rs. 1400? A. 12.5% B. 10% C. 12% D. 15%

Description : A article is listed at Rs. 2000 and a discount of 20% is offered on the list price .What additional discount must be offered to the customer bring the net price to Rs. 1400? A. 12.5% B. 10% C. 12% D. 15%

Last Answer : Answer – A. 12.5% Explanation – S.P after 1st discount, 100%………2000 80%………? ?=2000×80/100=1600 Net S.P = Rs. 1400. Discount on Rs. 1600 = Rs. 200. ∴Required discount = (200/1600 x 100)% =12.5%

A project has the following cash inflows Rs.34,444; Rs.39,877; Rs.25,000; and Rs.52,800 for years 1 through 4, respectively. The initial cash outflow is Rs.104,000. Which of the following four statements is correct concerning the project internal rate of return (IRR)? A. The IRR is less than 10%. B. The IRR is greater than or equal to 10%, but less than 14%. C. The IRR is greater than or equal to 14%, but less than 18%. D. The IRR is greater than or equal to 18%.

Description : A project has the following cash inflows Rs.34,444; Rs.39,877; Rs.25,000; and Rs.52,800 for years 1 through 4, respectively. The initial cash outflow is Rs.104,000. Which of the following four statements ... than or equal to 14%, but less than 18%. D. The IRR is greater than or equal to 18%.

Last Answer : C. The IRR is greater than or equal to 14%, but less than 18%.

Which of the following statements is correct regarding the internal rate of return (IRR) method? A. Each project has a unique internal rate of return. B. As long as you are not dealing with mutually exclusive projects, capital rationing, or unusual projects having multiple sign changes in the cash-flow stream, the internal rate of return method can be used with reasonable confidence. C. The internal rate of return does not consider the time value of money. D. The internal rate of return is rarely used by firms today because of the ease at which net present value is calculated

Description : Which of the following statements is correct regarding the internal rate of return (IRR) method? A. Each project has a unique internal rate of return. B. As long as you are not dealing with ... of return is rarely used by firms today because of the ease at which net present value is calculated

Last Answer : D. The internal rate of return is rarely used by firms today because of the ease at which net present value is calculated.

Which of the following statements is correct regarding the internal rate of return (IRR) method? A. Each project has a unique internal rate of return. B. As long as you are not dealing with mutually exclusive projects, capital rationing, or unusual projects having multiple sign changes in the cash-flow stream, the internal rate of return method can be used with reasonable confidence. C. The internal rate of return does not consider the time value of money. D. The internal rate of return is rarely used by firms today because of the ease at which net present value is calculated.

Description : Which of the following statements is correct regarding the internal rate of return (IRR) method? A. Each project has a unique internal rate of return. B. As long as you are not dealing with ... of return is rarely used by firms today because of the ease at which net present value is calculated.

Last Answer : D. The internal rate of return is rarely used by firms today because of the ease at which net present value is calculated.

Which of the following statements is correct regarding the internal rate of return (IRR) method? A. Each project has a unique internal rate of return B. As long as you are not dealing with mutually exclusive projects, capital rationing, or unusual projects having multiple sigD. The internal rate of return is rarely used by firms today because of the ease at which net present value is calculatedn changes in the cash-flow stream, the internal rate of return method can be used with reasonable confidence. C. The internal rate of return does not consider the time value of money.

Description : Which of the following statements is correct regarding the internal rate of return (IRR) method? A. Each project has a unique internal rate of return B. As long as you are not dealing with ... of return is rarely used by firms today because of the ease at which net present value is calculated

Last Answer : D. The internal rate of return is rarely used by firms today because of the ease at which net present value is calculated.

A profitability index (PI) of .92 for a project means that . A. The project's costs (cash outlay) are (is) less than the present value of the project's benefits B. The project's NPV is greater than zero C. The project's NPV is greater than 1 D. The project returns 92 cents in present value for each current rupee invested (cost)

Description : A profitability index (PI) of .92 for a project means that . A. The project's costs (cash outlay) are (is) less than the present value of the project's benefits B. The project's NPV is ... is greater than 1 D. The project returns 92 cents in present value for each current rupee invested (cost)

Last Answer : C. The project's NPV is greater than 1

Which of the following is true regarding NPV? A. NPV assumes reinvestment at the cost of capital. B. NPV decisions should be made based on the highest value for all the selections. C. NPV assumes reinvestment at the prevailing rate. D. NPV assumes reinvestment at the NPV rate.

Description : Which of the following is true regarding NPV?  A. NPV assumes reinvestment at the cost of capital. B. NPV decisions should be made based on the highest value for all the selections.  C. NPV assumes reinvestment at the prevailing rate.  D. NPV assumes reinvestment at the NPV rate.

Last Answer : A. NPV assumes reinvestment at the cost of capital.

. When estimating project time schedules using industry standards, the estimated project completion time for a systems project would be _____ person-months if the actual planning phase were completed in 6 person-months. a. 30 b. 40 c. 17.14 d. 9 e. 50

Description : . When estimating project time schedules using industry standards, the estimated  project completion time for a systems project would be _____ person-months if the actual  planning phase were completed in 6 person-months.  a. 30  b. 40  c. 17.14  d. 9  e. 50

Last Answer : b. 40

When estimating project time schedules using industry standards for a systems project, the following values are acceptable: 15% for planning, 25% for analysis, 50% for design, and 10% for implementation.

Description : When estimating project time schedules using industry standards for a systems project,  the following values are acceptable: 15% for planning, 25% for analysis, 50% for design,  and 10% for implementation.

Last Answer : Ans: False

Approximately what percentage of the project manager's time is spent in some form of communication, such as: conferences, meetings, writing memos, reading and preparing reports, and talking with project team members, upper management, and all other stalk holders? 1. 10-20% 2. 50-70% 3. 75-90% 4. 21-45%

Description : Approximately what percentage of the project manager's time is spent in some form of  communication, such as: conferences, meetings, writing memos, reading and preparing reports, and talking with project  team members, upper ... other stalk holders? 1. 10-20%  2. 50-70%  3. 75-90%  4. 21-45%

Last Answer : 3. 75-90%

Fat content of pulses is about (A) 5% (B) 10% (C) 15% (D) 20%

Description : Fat content of pulses is about (A) 5% (B) 10% (C) 15% (D) 20%

Last Answer : Answer : A

Any acquisition by the Payment Banks that are more than ____ will require approval of the RBI. A. 5% B. 10% C. 15% D. 20% E. None of the Above

Description : Any acquisition by the Payment Banks that are more than ____ will require approval of the RBI. A. 5% B. 10% C. 15% D. 20% E. None of the Above

Last Answer : A. 5% Explanation: Any acquisition of more than 5% will require approval of the RBI.

How much percentage of water lies between the cells. a.. 5% b. 10% c. 15% d. 20%

Description : How much percentage of water lies between the cells. a.. 5% b. 10% c. 15% d. 20%

Last Answer : 15%

Food must be moist, with a minimum water content of _____before contamination by microorganisms and spoilage can occur. a. 18% to 20% b. 10 to 15% c. 5 to 10% d. 0 to 5%

Description : Food must be moist, with a minimum water content of _____before contamination by microorganisms and spoilage can occur. a. 18% to 20% b. 10 to 15% c. 5 to 10% d. 0 to 5%

Last Answer : a. 18% to 20%

The percentage of water for normal consistency, is (A) 5% to 15% (B) 10% to 25% (C) 15% to 25% (D) 20% to 30%

Description : The percentage of water for normal consistency, is (A) 5% to 15% (B) 10% to 25% (C) 15% to 25% (D) 20% to 30%

Last Answer : Answer: Option C

In fineness test on cement, residue left on I.S. sieve no.9 shall not exceed __________ by weight of the sample of cement [ A ] 5% [ B ] 10% [ C ] 15% [ D ] 20%

Description : In fineness test on cement, residue left on I.S. sieve no.9 shall not exceed __________ by weight of the sample of cement [ A ] 5% [ B ] 10% [ C ] 15% [ D ] 20%

Last Answer : [ B ] 10%

When a segment’s product supply exceeds demand, how much appeal, to the customer, will a product priced $1 above or below the segment price range lose? a. 5% b. 10% c. 15% d. 20% e. 0%

Description : When a segment’s product supply exceeds demand, how much appeal, to the customer, will a product priced $1 above or below the segment price range lose? a. 5% b. 10% c. 15% d. 20% e. 0%

Last Answer : d. 20%

The acceptance criteria for precision studies as per bioanalytical method validation is? A. % RE must be within + 10% B. % RE must be within + 15% C. % RE must be within + 20% D. % RE must be within + 5%

Description : The acceptance criteria for precision studies as per bioanalytical method validation is? A. % RE must be within + 10% B. % RE must be within + 15% C. % RE must be within + 20% D. % RE must be within + 5%

Last Answer : B. % RE must be within + 15%

A good building stone should not absorb water more than a) 5%* b) 10% c) 15% d) 20%

Description : A good building stone should not absorb water more than a) 5%* b) 10% c) 15% d) 20%

Last Answer : a) 5%*

The bulking of sand with 2% moisture content is about a) 5% b) 10% c) 15%* d) 20%

Description : The bulking of sand with 2% moisture content is about a) 5% b) 10% c) 15%* d) 20%

Last Answer : c) 15%*

A person sold an item for Rs. 14280 after giving 15% discount on the labelled price and earned 19% profit on the cost price. What would have been the percentage profit, had he not given the discount? a) 30% b) 34% c) 40% d) 42.5% e) None of these

Description : A person sold an item for Rs. 14280 after giving 15% discount on the labelled price and earned 19% profit on the cost price. What would have been the percentage profit, had he not given the discount? a) 30% b) 34% c) 40% d) 42.5% e) None of these

Last Answer : Labelled price = [(14280×100)/85] = Rs. 16800 Or, 23X/120 = 69/5 Or, X= [(69×120)/(23×5)] = 72km. Answer is: c)

The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is (A) 15% (B) 10% (C) 1.5% (D) 150%

Description : The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is (A) 15% (B) 10% (C) 1.5% (D) 150%

Last Answer : (C) 1.5%

An investment should be accepted if its Net Present Value (NPV) is (A) 0 (B) 1(C) positive (D) negative

Description : An investment should be accepted if its Net Present Value (NPV) is (A) 0 (B) 1 (C) positive (D) negative

Last Answer : C) positive

To the nearest rupee, what is the net present value of a replacement project whose cash flows are -Rs.104,000; Rs.34,444; Rs.39,877; Rs.25,000; and Rs.52,800 for years 0 through 4, respectively? The firm has decided to assume that the appropriate cost of capital is 10% and the appropriate risk-free rate is 6%. A. Rs.15,115 B. Rs.26,798 C. Rs.33,346 D. Rs.48,121

Description : To the nearest rupee, what is the net present value of a replacement project whose cash flows are -Rs.104,000; Rs.34,444; Rs.39,877; Rs.25,000; and Rs.52,800 for years 0 through 4, respectively? The firm has decided to ... -free rate is 6%. A. Rs.15,115 B. Rs.26,798 C. Rs.33,346 D. Rs.48,121

Last Answer : C. Rs.33,346

The internal rate of return is the discount rate for which the NPV is a) positive b) zero c) negative d) less than 1

Description : The internal rate of return is the discount rate for which the NPV is a) positive b) zero c) negative d) less than 1

Last Answer : b) zero

The market price of a novel was 50% more than its cost price. Vadi was going to sell it at market price to a customer, but he showed vadi some defects in the novel, due to which vadi gave him a discount of 33%.Next day he came again and showed vadi some more defects, hence he gave him another discount that was equal to 14.5% of the cost price. What was the approximate profit/loss to vadi?

Description : The market price of a novel was 50% more than its cost price. Vadi was going to sell it at market price to a customer, but he showed vadi some defects in the novel, due to which vadi gave ... another discount that was equal to 14.5% of the cost price. What was the approximate profit/loss to vadi?

Last Answer : Let the cost price be Rs. 100  Then, market price is Rs. 150  Now, the first discount is of 33% Rs.150 =Rs. 50  Hence, its selling price = 150 - 50 = Rs. 100  since vadi's ... further discount will be equal to loss %  The next discount of 14.5% will be the loss percentage to vadi

Which one of the following illustrates why effective project management is beneficial to an organization? a. It utilizes resources as and when required under direction of a project manager. b. It advocates employing a consultancy firm which specializes in managing change. c. It recommends using only highly skilled people in the project team. d. It ensures that the chief executive is accountable for the achievement of the defined benefits.

Description : Which one of the following illustrates why effective project management is beneficial to an organization? a. It utilizes resources as and when required under direction of a project manager. b. ... d. It ensures that the chief executive is accountable for the achievement of the defined benefits.

Last Answer : a. It utilizes resources as and when required under direction of a project manager.

The operating profit and net sale of a firm are rs.2,00,000 and rs.10,00,000 respectively then operating ratio will be a) 20% b) 5% c) 50% d) 20%

Description : The operating profit and net sale of a firm are rs.2,00,000 and rs.10,00,000 respectively then operating ratio will be a) 20% b) 5% c) 50% d) 20%

Last Answer : a) 20%

If a customer booking speed article for Rs 50,000/‐ to 1,00,000/‐ in a month then what is the rate of discount applicable for the speed booking ? a) 5% b) 3% c) 4% d) None of these

Description : If a customer booking speed article for Rs 50,000/‐ to 1,00,000/‐ in a month then what is the rate of discount applicable for the speed booking ? a) 5% b) 3% c) 4% d) None of these

Last Answer : a) 5%

)A new project was initiated that involves new technology and subsequently has never been done before. What type of contract would to owner want to issue to reduce or eliminate as much risk as possible. 1. Firm fixed price 2. Cost plus fix fee 3. Cost plus incentive fee 4. Lump sum 5. A and D

Description : )A new project was initiated that involves new technology and subsequently has never been  done before. What type of contract would to owner want to issue to reduce or eliminate as much  risk as possible. 1. Firm ... 2. Cost plus fix fee  3. Cost plus incentive fee  4. Lump sum  5. A and D

Last Answer : 5. A and D

Given the following specification, which of the following values for age are in the SAME equivalence partition? If you are less than 18, you are too young to be insured. Between 18 and 30 inclusive, you will receive a 20% discount. Anyone over 30 is not eligible for a discount. A. 17, 18, 19. B. 29, 30, 31. C. 18, 29, 30. D. 17, 29, 31.

Description : Given the following specification, which of the following values for age are in the SAME equivalence partition? If you are less than 18, you are too young to be insured. Between 18 and 30 inclusive, you will receive a 20% discount. Anyone ... 17, 18, 19. B. 29, 30, 31. C. 18, 29, 30. D. 17, 29, 31.

Last Answer : C. 18, 29, 30.

A project with total budget cost of 30 crores is scheduled to be completed in 80 weeks. A periodic review was carried out at end of 60 weeks and results are as given: Budgeted cost of work performed (EV) = 17 crores Actual Cost of work performed (AC = 19 crores Budgeted cost of work scheduled (PV) = 21 croresWhat is the cost performance index? A.0.895 B.0.81 C.0.90 D.1.12

Description :  A project with total budget cost of 30 crores is scheduled to be completed in 80 weeks. A periodic review was carried out at end of 60 weeks and results are as given:  Budgeted cost of work performed (EV) = 17 ... crores What is the cost performance index?  A.0.895  B.0.81  C.0.90  D.1.12

Last Answer : A.0.895

Which of the following statements regarding cash flow patterns (for time periods 0, 1, 2, 3, and 4) is correct? A. The sequence of -Rs.100, Rs.50, Rs.40, Rs.60, and Rs.50 is a non-conventional cash flow pattern B. The sequence of -Rs.100, Rs.600, -Rs.1,100, Rs.600, and Rs.20 potentially has a maximum of two internal rates of return. C. The sequence of +Rs.100, -Rs.1,100, and Rs.1,600 is a conventional cash flow pattern. D. The sequence of -Rs.50, Rs.50, Rs.70, Rs.60, and -Rs.150 potentially has at most two internal rates of return.

Description : Which of the following statements regarding cash flow patterns (for time periods 0, 1, 2, 3, and 4) is correct? A. The sequence of -Rs.100, Rs.50, Rs.40, Rs.60, and Rs.50 is a non-conventional cash ... -Rs.50, Rs.50, Rs.70, Rs.60, and -Rs.150 potentially has at most two internal rates of return.

Last Answer : B. The sequence of -Rs.100, Rs.600, -Rs.1,100, Rs.600, and Rs.20 potentially has a maximum of two internal rates of return.

Radioactive iodine uptake by thyroid gland 24 hours of a test dose is (A) 1.5–15% of the test done (B) 15–20% of the test done (C) 20–40% of the test done (D) 50–70% of the test done

Description : Radioactive iodine uptake by thyroid gland 24 hours of a test dose is (A) 1.5–15% of the test done (B) 15–20% of the test done (C) 20–40% of the test done (D) 50–70% of the test done

Last Answer : Answer : C

A merchant purchases a table and a fan for Rs.450. He sells them making a profit of 15% on the table and 20% on a fan. He earns a profit of Rs.76.50. The difference between the original prices of the table and fan is equal to

Description : A merchant purchases a table and a fan for Rs.450. He sells them making a profit of 15% on the table and 20% on a fan. He earns a profit of Rs.76.50. The difference between the original prices of the table and fan is equal to

Last Answer : Let cost price of table be Rs X  Cost price of fan = Rs(450-X)  [15% of X]+[20% of (450-X)] = 76.50 15/100*X+20/100*(450-X) = 76.50  X = 270  So cost price of table = Rs.270  Cost price of fan = Rs.180  Difference=Rs(270-180) =Rs 90

The return available by investing the capital elsewhere is known as (A) profit rate (B) discount rate (C) opportunity cost (D) return on investment

Description : The return available by investing the capital elsewhere is known as (A) profit rate (B) discount rate (C) opportunity cost (D) return on investment

Last Answer : (C) opportunity cost

Vignesh purchased a TV set for Rs.11, 250 after getting discount of 10% on the labelled price. He spent Rs.150 on transport and Rs.800 on installation. At what price should it be sold so that the profit earned would have been 15% if no discount was offered? a) Rs.11877.50 b) Rs.16367.50 c) Rs.14247.50 d) Rs.15467.50 e) Rs.17567.50

Description : Vignesh purchased a TV set for Rs.11, 250 after getting discount of 10% on the labelled price. He spent Rs.150 on transport and Rs.800 on installation. At what price should it be sold so that the profit earned would have ... a) Rs.11877.50 b) Rs.16367.50 c) Rs.14247.50 d) Rs.15467.50 e) Rs.17567.50

Last Answer : Marked price = 11250 × 10/9 = Rs. 12500 Total cost=12500 + 150 + 800=Rs. 13450 S.P = 13450 × 115/100 = Rs. 15467.50 Answer: d)

The CPA should not undertake an engagement if his fee is to be based upon a. A percentage of audited net income. b. Per diem rates plus expenses. c. The findings of a tax authority. d. The complexity of the service rendered

Description : The CPA should not undertake an engagement if his fee is to be based upon a. A percentage of audited net income. b. Per diem rates plus expenses. c. The findings of a tax authority. d. The complexity of the service rendered

Last Answer : A percentage of audited net income