Why companies invest in projects with negative NPV? MGT201 Because there is hidden value in each project

Because there is hidden value in each project

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At the termination of project, which of the following needs to be considered relating to project assets?
Salvage value

Book value

Intrinsic value

Fair value

When a bond is sold at discount? MGT201
The coupon rate is greater than the current yield and the current yield is greater than yield to maturity

Which of the followings is (are) type (s) of problems associated with Capital Rationing? MGT201
Size Difference of cash flows

If dividends of preferred shareholders remain constant and required return decreases then what will be impact on present value of preferred shares? MGT201
Present Value of preferred share will decrease

If Net Present Value technique is used, what is the ranking criterion for projects? MGT201 Choose the highest NPV
![0_1575038179748_3924def0-50fd-465a-8691-1fc74da74e96-image.png](Uploading 100%)

Which one of the followings is type of problem associated with Capital Rationing? MGT201 Indifferent size of cash flows

Company A is analyzing some projects based on payback period amongst which one project will be selected. In your opinion which project is best for the company? MGT201
Project S with pay back period of 4.5 years

The value of the bond is NOT directly tied to the value of which of the following assets? MGT201 Real assets of the business

Real assets of the business
Liquid assets of the business
Fixed assets of the business
Lon term assets of the business

A bond has 4.3% interest yield and 16.9% Yield to Maturity. What would Capital Gains of the bond? MGT201 12.6%

Capital budgeting techniques help management in _______. MGT201 Assessing financial viability of projects

What is difference between shares and bonds? MGT201
Bonds are representing ownership whereas shares are not
Shares are representing ownership whereas bonds are not
Shares and bonds both represent equity
Shares and bond both represent liabilities