The conflicts in project ranking in capital budgeting as per NPV and IRR may arise because of

Assertion (A): The IRR of a project is the discount rate which reduces its NPV to zero.
Reason (R): A project is worth accepting if the IRR exceeds the cost of capital.

A

(A) is true, but (R) is false

B

Both (A) and (R) are true

C

(A) is false, but (R) is true

D

Both (A) and (R) are false

Assertion (A): When two or more investment proposals are mutually exclusive, ranking the proposals on the basis of IRR, NPV and PI methods may give contradictory results.
Reason (R): The contradictory results in the ranking are due to differing dimensions relating to the sacle of investments, cash flow patterns and project lives.

A

Both (A) and (R) are true

B

(A) is true, but (R) is a necessary condition, but not a sufficient condition

C

Both (A) and (R) are false

D

Both (A) and (R) are true and (R) is the correct explanation of (A)

In a school, a Science project has been assigned to three students Rajat, Rohan, and Bishal and it was told that they should work together on that project. Working alone Rohan can finish the project in 20 days, it is also given that if Rajat and Bishal work on the project they will take 9 days to complete the project. Bishal alone can complete the project in 15 days. Rohan started working on the project from Monday but after 8 days he left and after that Rajat and Bishal started working on it but Bishal also left 6 days before completion of the work and Rajat completed the remaining project, in how many days will the project be completed and on which day will it be completed?

A

17 days, Thursday

B

15 days, Tuesday

C

16 days, Wednesday

D

18 days, Friday

E

14 days, Monday

Which of the following is/was the type of budgetary practice followed in India? 1. Zero-base budgeting 2. Output and outcome budgeting 3. Development budgeting 4. Programmed Budgeting Choose the correct answer using the codes below

A

1, 2 and 3

B

1 and 2 only

C

2, 3 and 4

D

1, 3 and 4

E

All 1, 2, 3 and 4

A lady wants to buy the following items in the given price range- 1. Tomato between Rs. 40 and Rs. 45 per kg. 2. Grapes in the price range of Rs. 80 and Rs. 90 per kg. 3. Milk packets at Rs. 23 per liter. In which shop from the following will she definitely get all her items/ A. Shop S sells tomato at Rs. 22.5 per half kg, Grapes at Rs. 82 per kg and milk at Rs. 24 per liter. B. Shop H sells grapes at Rs. 21 per quarter kg, milk at 12.5 per half litre and tomato at Rs. 22 per half kg. C. Shop O sells milk at Rs. 11.5 per half litre, tomato at 21 per half kg and grapes at Rs. 43 per half kg. D. Shop P sells tomato at Rs. 23.5 per half kg, grapes at Rs. 85 per kg and milk at Rs. 23 per litre.

A

B

D

C

B

D

C

Man suffers from several forms of conflicts. The conflicts may arise because of several reasons. Which among the following would be the reason? a. Full or partial failure of socialization due to biological or social reasons and lack of abilities to follow values and norms of society b. Conflict between different codes when two or more codes are applicable in the same situation

A

Only A

B

Only B

C

Not A neither B

D

Both option A and B

Match the items of List - II with the items of List - I and indicate the code of correct matching. The items relate to economies of scale/scope. List - I List - II (a) Economies of scale (i) arise with lower average costs of manufacturing a product when two complementary products are produced by a single firm (b) Internal economies ii) Mean lowering of costs of production by producing in bulk c) External economies (iii) Arise when cost per unit depends on size of the firm (d) Economies of scope (iv) Arise when cost per unit depends on the size of the industry, not the firm

A

(a) -(ii), (b) - (iv), (c) - (i), (d) - (iii)

B

(a) - (i), (b) - (ii), (c) - (iii), (d) - (iv)

C

(a) - (ii), (b) - (iii), (c) - (iv), (d) - (i)

D

(a) - (iv), (b) - (iii), (c) - (ii), (d) - (i)

Following are the stages of Project Method in Teaching of Mathematics without any logical order - a. Choosing and purposing the Project b. Executing the Project c. Providing a situation d. Planning of the Project e. Recording of the Project f. Evaluation of the Project Out of the following which alternative shows correct sequence of the above mentioned stages of Project Method?

A

a b c d e f

B

b c d e f a

C

c a d b f e

D

c a d b e f

The payback period can become an important issue when a large scope project is developed over several years. Maureen has been assigned the responsibility of calculating the payback period for her project that is to be completede in 3 years. The internal rate of return(IRR) is 7% and the annual savings will be $800,000 per year. The total cost is $4,000,000 and the rate of return during this time period is 3%. What is the payback period of Maureen's project?

A

3 years

B

4 years

C

5 years

D

13.3 years

Under which of the following situations the decision outcome on evaluation of investment opportunities vary under NPV and IRR methods per se? a) Time disparity b) Cost disparity c) Life disparity d) Volume disparity Choose the correct combination of situations:

A

a and d only

B

b and d only

C

a, b and c only

D

b, c and d only

The conflicts in project ranking in capital budgeting as per NPV and IRR may arise because of

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