1. JOHN Ltd., an organization situated in India, produces exceptionally top notch modem furniture and offers to few retail outlets in India and Nepal. It is confronting extreme rivalry. Late examinations on attractiveness of items have plainly demonstrated that the client is presently more intrigued by assortment and decision as opposed to selectiveness and remarkable quality. Since the expense of value wood in India is exceptionally high, the organization is surveying the proposition for import of woods in mass from Nepalese provider.

The gauge of net Indian (') and Nepalese Money (NC) incomes in Ostensible expressions for this proposition is appeared underneath:

Net Income (in millions)

Year 0 1 2 3

NC -25.000 2.600 3.800 4.100

Indian (') 0 2.869 4.200 4.600

The accompanying data is important:

(i) XYZ Ltd. assesses all ventures by utilizing a rebate pace of 9% p.a. All Nepalese clients are invoiced in NC. NC incomes are changed over to Indian ( ') at the forward rate and limited at the Indian rate.

(ii) Inflation rates in Nepal and India are required to be 9% and 8% p.a. individually. The current conversion scale is ' 1= NC 1.6

Expecting that you are the account director of XYZ Ltd., ascertain the net present worth (NPV) and altered inside pace of return (MIRR) of the proposition.

You may utilize following qualities as for rebate factor for ' 1 @ 9%.

Present Value Future Worth

Year 1 0.917 1.188

Year 2 0.842 1.090

Year 3 0.772 1

2. When negligible item arrives at its most extreme, what can be said of complete item?

A) total item should be at its most extreme

B) total item begins to decrease regardless of whether minor item is positive

C) total item is expanding if peripheral item is as yet sure

D) total item levels off

3. Variable expenses are:

A) sunk costs

B) multiplied by fixed expenses

C) costs that change with the degree of creation

D) defined as the adjustment in complete expense coming about because of the creation of an extra unit of yield.

4. Which is anything but a fixed expense?

A) monthly lease of Rs.1,000 legally indicated in a one-year rent

B) an protection premium of Rs.50 each year, paid a month ago

C) an lawyer's retainer of Rs.50,000 each year

D) a laborer's compensation of Rs.15 each hour

5. If you realize that with 8 units of yield, normal fixed expense is Rs.12.50 and normal variable expense is Rs.81.25, at that point absolute expense at this yield level is:

A) Rs.93.75 B) Rs.97.78

C) Rs.750 D) Rs.880

6. With fixed expenses of Rs.400, a firm has normal absolute expenses of Rs.3 and normal variable expenses of Rs.2.50. Its yield is:

A) 200 units B) 400 units

C) 800 units D) 1600 units

7. The explanation the negligible expense bend in the end increments as yield increments for the normal firm is on the grounds that:

A) of diseconomies of scale

B) of least proficient scale

C) of the theory of consistent losses

D) normal benefit surpasses financial benefit

8. If the short-run normal variable expenses of creation for a firm are rising, at that point this shows that:

A) average complete expenses are at a greatest

B) average fixed expenses are consistent

C) marginal costs are better than expected variable expenses

D) average variable expenses are less than ideal fixed expenses

9. If a more productive innovation was found by a firm, there would be:

A) an upward move in the AVC curve B) a descending movement in the AFC bend

C) an upward move in the AFC curve D) a descending movement in the MC bend

10. The association's short-run minimal expense bend is expanding when:

A) marginal item is increasing B) peripheral item is diminishing

C) complete fixed expense is increasing D) normal fixed expense is diminishing