Practice Applications Of Tvm In Business & Tech Startups (24.6) - Time Value of Money
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Applications of TVM in Business & Tech Startups

Practice - Applications of TVM in Business & Tech Startups

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What is capital budgeting?

💡 Hint: Think about how companies decide whether to invest in a project.

Question 2 Easy

Define EMI.

💡 Hint: Consider how loans are structured.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does Capital Budgeting help determine?

Future cash flow assessment
Project investment worthiness
Stock price evaluation

💡 Hint: Think about decision-making in finance.

Question 2

True or False: Loan amortization determines the future value of a loan.

True
False

💡 Hint: Consider the role of amortization.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

Design a capital budgeting model for a software startup considering two projects with different expected cash flows over five years. Use NPV to decide which project to pursue.

💡 Hint: Estimate cash flows carefully!

Challenge 2 Hard

A startup has an option to lease software for ₹5,000 per year for 3 years or buy it for ₹15,000 upfront. Calculate and compare the total costs using TVM principles to decide the best option.

💡 Hint: Don't forget to account for the time value in decisions!

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