Question 23
A project earns a total of 50% return in two years. If annual return in the first year is 30%, then what is the annual return in the second year? (Round off to nearest integer)
30%
25%
20%
15%
Question 23: A project earns a total of 50% return in two years. If a…
Show answer
Correct answer
15%
Question 23 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 27 Oct 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB2 27 Oct 2024). It carries 4 marks.
More questions from this paper
- Consider a bond which pays 500 units in 5 years and 1000 units in 10 years. What is the maturity and duration of the bo…
- The table below relates to the economy of Galaland, where the typical consumer’s market basket consists of 2 clothes an…
- Assume Shyam earns Rs. 10000 in period 1 and Rs 12000 in period 2. He spends his earnings on consumption in period 1 an…
- The current average price level of goods in the economy of Godzilla is 80 units. The prevailing nominal interest rate i…
- A company with a AAA bond rating will command a higher interest rate on its bonds than a company with lesser BBB bond r…
- Your portfolio consists of two blue bonds: each has a face value of 100 units and a probability of default p_b = 20\%. …
- Your portfolio consists of two blue bonds: each has a face value of 100 units and a probability of default p_b = 20\%. …
- A basis point is equal to
- What is the term for a graphical representation of the relationship between interest rates and the maturities of debt s…
- What should be the rate of interest per year so that your money triples in 15 years?
- An investment is expected to yield Rs 3000 in three years, Rs 5000 in 5 years, and Rs 7000 in seven years. What is the …
- You have been depositing money at the end of each year into an account drawing 8% interest annually. What is the balanc…
- Which of the following statements about bubbles is correct?
- Suppose an asset earns an annual interest rate of 8% which is continuously compounded. If asset sells for 100 units tod…
- What is the present value of a cash flow stream that pays Rs 3000 next year, grows at a rate of 3% per year thereafter …
- You discover an antique in your attic that your father purchased 30 years ago for Rs 400. You auction it and receive Rs…
- You believe in the power of compounding and decide to save Rs 100 per day by avoiding the junk foods. You deposit the R…
- The LIC stock is trading at Rs 400 today. LIC is expected to pay dividend of Rs 30 per share next year. If the growth r…
- Suppose an investment cost 5,000 today and pays off Rs 3,000 in the next year and Rs 4,000 in two years. What is the in…
- Which of the following statements is correct regarding internal rate of return (IRR)?
- There is a project which requires an initial investment of 500 units today. This project pays off 500 units after 5 yea…
- Consider the following three projects which have initial cost of Rs 1000 today:\ Project 1: It pays out Rs. 500 next ye…
- What is the annualized rate of return of an investment of 100 units that promises to return 200 units in 10 years?
- A financial advisor tells you that you can become a millionaire if you start investing early. You start to deposit 25,0…