Capital Budgeting Decisions in Business Finance : Practice MCQ Questions & Answers with Explanations

The correct answer is B: Ignores cash flows after the payback period.

The payback period method calculates how long it takes to recover the initial investment from net cash inflows. Its main limitation is that it ignores all cash flows occurring after the payback period and does not consider the time value of money. Discounted payback period is the modified version that accounts for time value.

The correct answer is C: NPV is the difference between the present value of cash inflows and the initial investment.

NPV accounts for the time value of money by discounting future cash flows. A positive NPV indicates the project adds value and should be accepted; a negative NPV means it should be rejected. NPV and IRR may occasionally give conflicting decisions when evaluating mutually exclusive projects.

The correct answer is C: 30 per cent.

As per Union Budget 2022, income from the transfer of any virtual/digital asset will be taxed at 30%. No deduction except the cost of acquisition will be allowed, and no loss from such a transaction can be carried forward. Additionally, TDS will be imposed on payments for the transfer of crypto assets at a rate of 1% for transactions above a certain threshold. India's first global cryptocurrency index, tracking the 15 most-traded cryptocurrencies, was launched by CryptoWire (a unit of TickerPlant).

योग्य उत्तर C: 14 टक्के आहे.

केंद्र आणि राज्य सरकारी कर्मचाऱ्यांची कर कपात मर्यादा 10% वरून 14% पर्यंत वाढवण्यात आली आहे. यामुळे राज्य सरकारच्या कर्मचाऱ्यांना सामाजिक सुरक्षा लाभ मिळण्यास मदत होईल आणि त्यांना केंद्र सरकारच्या कर्मचाऱ्यांच्या बरोबरीने आणता येईल. डिजिटल मालमत्तेच्या (क्रिप्टोकरन्सी) हस्तांतरणातून मिळणाऱ्या उत्पन्नावर 30% कर, तसेच व्यवहारावर 1% कर आकारला जाईल.