Practice Discounted Cash Flow (DCF) Analysis - 24.7 | 24. Time Value of Money | Management 1 (Organizational Behaviour/Finance & Accounting)
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define Discounted Cash Flow (DCF).

💡 Hint: What is the purpose of this method?

Question 2

Easy

What does NPV stand for?

💡 Hint: It represents the value of money today versus future cash flows.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What does DCF stand for?

  • Dynamic Cash Flow
  • Discounted Cash Flow
  • Diminished Cash Flow

💡 Hint: Think about the method used for cash flow valuation.

Question 2

True or False: A positive NPV means you should reject a project.

  • True
  • False

💡 Hint: Consider what a positive value means in context.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Consider an investment which requires an initial outlay of ₹50,000 and is expected to generate cash flows of ₹15,000 each year for 5 years. Calculate the NPV using a discount rate of 10%.

💡 Hint: Break down each cash flow and discount it to find the sum!

Question 2

A project has a cost of ₹100,000 and expected cash inflows of ₹30,000 yearly for 4 years at a 12% discount rate. What is the NPV?

💡 Hint: Convert future values to present values to assess viability.

Challenge and get performance evaluation