Question 1. Renegade Projects Ltd. is assessing 3 ventures, P-I, P-II, P-III. Following data is accessible in regard of these activities:

P-I P-II P-III

Cost $ 15,00,000 $ 11,00,000 $ 19,00,000

Inflows-Year 1 6,00,000 6,00,000 4,00,000

Year 2 6,00,000 4,00,000 6,00,000

Year 3 6,00,000 5,00,000 8,00,000

Year 4 6,00,000 2,00,000 12,00,000

Hazard Index 1.80 1.00 0.60

Least required pace of return of the firm is 15% and appropriate expense rate is 40%. The danger free financing cost is 10%.

Required:

(i) Find out the danger changed rebate rate (RADR) for these activities.

(ii) Which project is the awesome?

Answer all the MCQ in proper sequence in reference to managerial accounts:

2. On the off chance that there is no swelling during a period, the Money Cashflow would be equivalent to:

a. Present Value

b. Genuine Cash stream

c. Genuine Cash stream + Present Value

d. Genuine Cash stream - Present Value

3. Cash Discount Rate if equivalent to:

a. (1 + Inflation Rate) (1 + Real Rate)- 1

b. (1 + Inflation Rate) 4-(1 + Real Rate)- 1

c. (1 + Real Rate) 4-(1 + Inflation Rate)- 1

d. (1 + Real Rate) + (1 + Inflation Rate)- 1

4. Which of coming up next is a danger factor in capital planning?

a. Industry explicit danger factors

b. Rivalry hazard factors

c. Venture explicit danger factors

d. The entirety of the above mentioned

5. Which of the accompanying wellsprings of assets has an Implicit Cost of Capital?

a. Value Share Capital

b. Inclination Share Capital

c. Debentures

d. Held profit

6. Minimal expense of capital is the expense of:

a. Extra Sales

b. Extra Funds

c. Extra Interests

d. Nothing unless there are other options

7. Cost of Redeemable Preference Share Capital is:

a. Pace of Dividend

b. After Tax Rate of Dividend

c. Rebate Rate that likens PV of inflows and out-streams identifying with capital

d. Nothing unless there are other options

8. Obligation Financing is a less expensive wellspring of account due to:

a. Time Value of Money

b. Pace of Interest

c. Assessment deductibility of Interest

d. Profits not Payable to loan specialists

9. Cost of Equity Share Capital is more than cost of obligation on the grounds that:

a. Presumptive worth of debentures is more than face estimation of offers

b. Value shares have higher danger than obligation

c. Value shares are effectively saleable

d. The entirety of the three above

10. Monetary Leverage emerges in light of:

a. Fixed expense of creation

b. Variable Cost

c. Interest Cost

d. Nothing from what was just mentioned

11. FL is zero if:

a. EBIT = Interest

b. EBIT = Zero

c. EBIT = Fixed Cost

d. EBIT = Pref. Profit