If the Present Value of Cash Inflows are greater than the Present Value of Cash Outflows, the project would be
| A. | Accepted |
| B. | Rejected with condition |
| C. | Rejected with approval |
| D. | Rejected |
Answer : A Explanation : Thando said: (3:13am on Wednesday 21st February 2018)
asserts than liabilities
asaf said: (12:04am on Saturday 24th March 2018)
accepted because cash inflows keep the business running and is a sign for the long life of the business
NIck said: (10:12pm on Wednesday 25th April 2018)
The management of Shruti Ltd. wants to invest Rs. 80,000 in a project which will giveearnings for five years. The earnings after tax and before depreciation will be Rs. 20,000 in the first year, Rs. 40,000 in the second year, Rs. 40,000 in the third year, Rs. 20,000 in the fourth year and Rs. 10,000 in the fifth year.Please suggest management whether this project is worth-while to be taken, if management has suggested 12 % discount rate for the computation of present value. Anyone solve this question ?
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Option: A Explanation : Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. |
