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Financial Forensics, End Term
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Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of ₹ 34,500, ₹ 55,950, ₹ 62,210, ₹ 59,930, and ₹ 42,910, respectively. The project has an initial cost of ₹149,920 and the required return is 8 percent. What is the project's NPV?
Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of ₹ 34,500, ₹ 55,950, ₹ 62,210, ₹ 59,930, and ₹ 42,910, respectively. The project has an initial cost of ₹149,920 and the required return is 8 percent. What is the project's NPV? In the financial year 2022-2023 a company consumed raw materials worth 10,00,000 INR. The balance sheet as of 31st March 2023 had creditors (for raw materials) worth 5,00,000 INR and the same figure in the balance sheet as of 31st March 2022 was 2,00,000 INR. As a creditor, is it safe to lend raw materials for the company for a 120-day credit? Which of the following statement(s) is correct about the Capital Asset Pricing Model:\ I. If the beta of a stock is greater than 1, the expected return on the stock is higher than the market return, assuming all other factors remain constant. II. If the covariance between the return on a stock and the return on the market is zero, the stock's beta will also be zero. III. As per CAPM, the risk-free rate has no impact on the expected return of a stock. IV. A stock with a negative beta can have an expected return lower than the risk-free rate.