# NPTEL Project Management For Managers Assignment 4 Answers 2023

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## NPTEL Project Management For Managers Week 4 Assignment Answers 2023

1. Which of the following is not a discounted capital budgeting technique?

1.  Discounted PBP
2.  Profitability index
3.  ARR
4.  NPV
`Answer :-For Answer Click Here`

2. Internal Rate of return (IRR) is the discounting rate in which Net Present value (NPV) is equal to _.

1. 0
2. 1
3. 2
4. 3
`Answer :- For Answer Click Here`

3. Which of the following statement is false about ARR method?

1. It takes into account accounting profits
2. It considers time value of money
3. Cut off rate is chosen by management
4. The concept of average investment and average earnings differ widely
`Answer :- For Answer Click Here`

4. Mr X wants to receive 120,000 every year for next 10 years (starting from next year from now). How much money should he deposit now? The interest rate is 10%.

1. 637400
2. 737400
3. 837400
4. 937400
`Answer :- For Answer Click Here`

5. Calculate the net present value of a project which requires an initial investment of \$243,000 and it is expected to generate a cash inflow of \$50,000 each month for 12 months. Assume that the salvage value of the project is zero. The target rate of return is 12% per annum.

1. \$ 391754
2. \$ 301000
3. \$ 197543
4. \$ 319754
`Answer :- For Answer Click Here`

6. The first public offering of equity shares of a company, which is followed by a listing of its shares on the stock market is called?

1.  IPO
2.  BPO
3.  IOP
4.  EPO
`Answer :- For Answer Click Here`

7. The first public offering of equity shares of a company, which is followed by a listing of its shares on the stock market is called?

1.  IPO
2.  BPO
3.  IOP
4.  EPO
`Answer :- For Answer Click Here`

8. Which of the following is not a key factor for determining the debt-equity ratio for a project?

1. Cost
2. Nature of assets
4. Price elasticity
`Answer :- For Answer Click Here`

9. Who are the owners of a company?

1.  Creditors
2.  Equity Shareholders
3.  Managers
4.  Debenture holders
`Answer :- For Answer Click Here`

10. Which of the following is not true about Net present Value (NPV)?

1.  It considers all cash flows
2.  It considers time value of money
3.  It considers risk factors
4.  It allows expected changes in cost of capital
`Answer :- For Answer Click Here`

Q1.Sam needs to invest money for future need of 8 lacs after 5 years, @ 8%, how much money should he deposit in bank, if the interest is paid annually?

(A) 544466

(B) 540540

(C) 545000

(D) 550000

Q2. Sam needs to invest money for future need of 8 lacs after 5 years, @ 8%, how much money should he deposit in bank, if the interest is paid semi-annually?

(A) 544466

(B) 540540

(C) 545000

(D) 550000

Q3. What should be the preferable value of profitability index for a project to be feasible?

(A) Less than 1

(B) Equal to 1

(C) Greater than 1

(D) Equal to 0

Answer :- (C) Greater than 1

Q4. Net profitability index is equal to

(A) PI + 1

(B) PI + 2

(C) PI – 1

(D) PI – 2

Q5. Net present value (NPV) is defined as

(A) Product of present value of cash inflows and cash outflows

(B) Ratio of present value of cash inflows and cash outflows

(C) Difference b/w present value of cash inflows and cash outflows

(D) Sum of present value of cash inflows and cash outflows

Answer :- Difference b/w present value of cash inflows and cash outflows

Q6. Which of the following technique do not belong to discounting techniques?

(A) IRR

(B) Profitability index

(C) ARR

(D) NPV

Q7. The correct formula for Discounted PBP is :
Where, Y0 = is the year just before the payback period is attained

Cu.PV0 = Cumulative present value of Y0

CF1 = Cash flow of payback year

(A) Cu.PV0 – (Y0) / (CF1)

(B) CF1 – (Cu.PV0) / (Y0)

(C) Y0 – (Cu.PV0) / (CF1) Y0 –

(D) (CF1) / (Cu.PV0)

Answer :- (C) Y0 – (Cu.PV0) / (CF1) Y0 –

Q8. What are the sources of Finance?

(A) Internal accruals

(B) Debenture / Bonds

(C) Term loans

(D) All of the above

Answer :- (D) All of the above

Q9. Capital budgeting is the planning process used to determine

(A) Short term investment

(B) Long term investment

(C) Mid-term investment

(D) Short and long term investment

Answer :- (B) Long term investment

Q10. The overall risk factor for low risk is

(A) Greater than 0.3

(B) Less than 0.3

(C) Greater than 0.4

(D) Between 0.3 to 0.4