00:01
Hello, for the first question, correct option is option no.
00:05
A i .e.
00:07
Irr is most reliable when evaluating a single project with cash outflows at time 0 and the final year and inflows in all other time periods.
00:18
For second question, option no.
00:22
A is the correct option i .e.
00:25
When projects are mutually exclusive and there is no constraint on capital to invest, selection should be made according to the project with the highest npv.
00:35
For third question, option no.
00:38
D is the correct option i .e.
00:42
Use of a profitability index to evaluate a mutually exclusive project in the absence of capital rationing can result in misguided project selection.
00:53
For question 4, the correct option is option no.
00:58
E i .e.
00:59
The return on invested capital most directly measures the project impact on earnings.
01:06
For fifth question, we will calculate the net present value for each project and net present value formula is cash inflows minus cash outflows.
01:23
For project a, npv will be 27 -18 i .e.
01:31
9...