Bissoy.com
Doctors Medicines MCQs Q&A

Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is

Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is Correct Answer positive

Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is positive. The modified internal rate of return is a financial measure of an investment's attractiveness. It is used in capital budgeting to rank alternative investments of equal size. As the name implies, MIRR is a modification of the internal rate of return and as such aims to resolve some problems with the IRR.

Related Questions

Given below are quantities named A,B and C. Based on the given information, you have to determine the relation between the quantities. You should use the given data and your knowledge of mathematics to choose among the possible answer. Akash’s present age is six years less than Badshah’s age after nine years. The ratio of present age of Badshahand RAFTAAR is 5:9. Raftaar is 21 years younger than Denny and Denny is three years older than Honey. Square of the Honey’s present age is 1350 more than 15 times of Honey’s present age? Quantity A: What is the difference between AKASH’s present age and HONEY’s age after 16 years? Quantity B: After 6 years Mankirat’s age is twice that of Akash’s present age. Diljeet’s present age is 3.5 times of 25% of sum of present age of Mankirat and A. What is the present age of Diljeet? Quantity C: Twice of A’s present age is eight years more than that of Babbu’spresent age, then find the Babbu’s present age?
Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known.
The present cost of the plant = $${\text{original cost}} \times \frac{{{\text{index value at present}}}}{{{\text{index value at time original cost was obtained}}}}.$$
The most major component of this cost index is
Seven chocolates, A, B, C, D, E, F and G, are bought at different costs between Rs. 40 and Rs. 50 (excluding both Rs. 40 and Rs. 50) but not necessarily in the same order. The cost of chocolate C is Rs. 5 less than that of chocolate E. The cost of chocolate A is a prime number. The cost of chocolate F is Rs. 2 more than that of chocolate A. The cost of chocolate F is more than that of chocolate E. The cost of chocolate D is an odd number. The cost of chocolate G is Rs. 3 more than the cost of chocolate D. None of the chocolates cost Rs. 44. The cost of chocolate B is an even number. What is the cost of chocolate E?
Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost x (index value/(index value at original cost was obtained)The most major component of this cost index is
Read the following statements:
1. The rate of return on investment increases with the shortage of working capital.
2. Net working capital is the excess of current assets over current liabilities.
3. Greater the size of the business unit, larger will be the requirement of working capital.
4. Working capital is also known as circulating capital.
Which one of the following consists of the correct statements?
Arrange the following steps of 'adjustment of old partners' capital on the basis of incoming partner's capital in a correct order.
1. Ascertain the present capital of the old partners.
2. Calculation of total capital of firm on the basis of new partner's capital.
3. Finding the surplus/deficit capital.
4. Determining the new capital of each partner.
Select the correct answer:
When labour is plotted on X-axis and capital is plotted on Y-axis and an iso-quant is prepared, then which of the following statements is/are false ? (a) Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant. (b) Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour. (c) Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.
When labour is plotted on X-axis and capital is plotted on Y-axis and an isoquant is prepared, then which of the following statement(s) is/arefalse?
1. Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant.
2. Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour.
3. Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.
Two stock options are available for buying. Each offers a variable rate of return of profit over a period of 10 years. For first 4 years one has an incremental rate of return which increases by 2% per year starting from 3% of the investment and stays constant at 8% for the rest of the period. The second one has a constant annual rate of return throughout and give 10% more return after 10 years. What is the annual rate of return on second option?
Seven chocolates A, B, C, D, E, F and G are bought at different costs between Rs. 40 and Rs. 50 (excluding 40 and 50) but not necessarily in the same order. The cost of chocolate C is five less than that of chocolate E. The cost of the chocolate A is a prime number. The cost of chocolate F is two more than that of chocolate A. The cost of chocolate F is more than that of chocolate E. The cost of chocolate D is an odd number. The cost of chocolate G is three more than the cost of chocolate D. None of the chocolates costs Rs. 44. The cost of chocolate B is an even number. Which is the following chocolates is costlier than E?