Question
Answer the following MCQs - 25)Kristin Ltd has an estimated requirement of Rs 8 lakh for a one month period. The fixed cost of transaction
Answer the following MCQs - 25)Kristin Ltd has an estimated requirement of Rs 8 lakh for a one month period. The fixed cost of transaction is Rs 250 and the interest rate on g-sec is 12% p.a. What is the optimum transaction size ? Select one: a. Rs 200000 b. Rs 57735 c. Rs 100000 d. Rs 20000
26)LMN Corporation is considering an investment that will cost Rs 80,000 and have a useful life of 4 years. During the first 2 years, the net incremental after-tax cash flows are Rs 25,000 per year and for the last two years they are Rs 30,000 per year. What is the payback period for this investment? Select one: a. 0.25 years b. 3 years c. 4 years d. 5 years
27)If the payback period is 4 years and the uniform increase in cashflows per year is Rs 2750000 then the net initial investment is____. Select one: a. Rs 10,511,000 b. Rs 12,105,000 c. Rs 1,100,000 d. Rs 11,000,000
28)The current ratio is 2.5 and net working capital is Rs 3,00,000.Total current assets of the firm would be_____. Select one: a. Rs 200000 b. Rs 300000 c. Rs 400000 d. Rs 500000
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