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NPTEL » Entrepreneurship Essentials

Course outline

How does an NPTEL online course work?

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Week 10:

Week 11:

Lecture 51 : Some Dos and Donts

Lecture 52 : Go-To-Market Strategies-I

Lecture 53 : Go-To-Market Strategies-II

Lecture 54 : Capital Budgeting Decisions

Lecture 55 : Capital Budgeting Decisions (Contd.)

Lecture Material

Quiz: Week 11 : Assignment 11

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Assignment 11 Solution

Week 12:

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Week 11 :
Assignment 11
The due date for submitting this assignment has
passed.
Due on 2022-04-13, 23:59 IST.

Assignment submitted on
2022-04-10, 13:31 IST
Instruction: If all the options are correct,
choose “All the options are correct” and not
any one individual option.
1) Read the following statements and answer 1 point
the question following them.

A. All cash flows other than the initial investment

occur at the end of respective periods.
B. All cash flows generated by an investment
project are immediately reinvested at a rate of return
equal to the IRR of the project.
C. All cash flows other than the initial investment
occur at the beginning of respective periods.
D. All cash flows generated by an investment
project are immediately reinvested at a rate of return
equal to the discount rate.

Which of the above are the two correct major

assumptions of discounted net present value estimation?

a. A & C
b. A & D
c. B & D
d. C & D

Yes, the answer is correct.

Score: 1
Accepted Answers:
b. A & D

2) Which of the following statements is 1 point

incorrect?

a. A project may look attractive based on

discounted net present value method but may not be
so based on break-even analysis.
b. The hurdle rate is the minimum rate of return
below which a company will not accept a project.
c. The break-even point estimation does not take
into account the time value of money.
d. The payback period method takes into
account the time value of money.

Yes, the answer is correct.

Score: 1
Accepted Answers:
d. The payback period method takes into account the
time value of money.

3) An article appeared in the Vogue journal with 1 point

the title “Netflix of Eye Wear” and that led to a huge
number of customer registration for purchasing the
product. The article itself was influenced by a word of
mouth by one of the faculty members of the university
where the founders were studying. Which marketing
method did Warby Parker use?

a. Public relation.
b. Content marketing.
c. Social media.
d. Advertisement.
e. Influencer marketing

Yes, the answer is correct.

Score: 1
Accepted Answers:
a. Public relation.

4) Which of the following is not part of a great 1 point

launch?

a. Empathizing to define the pain-point.

b. Timing and cross-functional readiness
c. Influencers/Customers.
d. Pre-brief.
e. Messaging.

Yes, the answer is correct.

Score: 1
Accepted Answers:
a. Empathizing to define the pain-point.

5) Which of the following is not part of the go- 1 point

to-market strategies?

a. Market segmentation and strategic product

roadmap, marketing strategies.
b. Product-market-fit, competitive landscape,
and pricing model.
c. Distribution/ Channel/ Partner model.
d. Engagement with the early majority customers
for achieving growth.

Yes, the answer is correct.

Score: 1
Accepted Answers:
d. Engagement with the early majority customers for
achieving growth.

6) Which of the following is not true relating to 1 point

either ‘Customer Acquisition Cost’ or ‘Life Time Value’ of
a customer?

a. Customer acquisition cost must be less than

the life-time value.
b. If our business does not offer the choices for a
customer to come back repeatedly, we should not
spend so much money to acquire customers as
much we earn from that customer in the first
transaction.
c. The number of registered users is definitely
regarded as an important metric that can be
highlighted during a presentation before investors
since investors would view that as a guaranteed
success factor.
d. Network-based companies such as Amazon &
Flipkart can afford to spend a lot of money to
acquire customers at a high burn rate since they
offer many choices to customers to come back
repeatedly.

Yes, the answer is correct.

Score: 1
Accepted Answers:
c. The number of registered users is definitely
regarded as an important metric that can be
highlighted during a presentation before investors
since investors would view that as a guaranteed
success factor.

7) Which of the following is not part of capital 1 point

budgeting decision process?

a. Comparing two or more business models

b. Estimating acceptability of project based on
expected return
c. Selection between multiple machines based on
the cash flow attributed to the machines.
d. Estimating the break-even point

Yes, the answer is correct.

Score: 1
Accepted Answers:
d. Estimating the break-even point

8) Which of the following statements is NOT 1 point

correct about capital budgeting?

a. It helps us to assess the performance of

managers in efficient deployment of capital.
b. It helps entrepreneurs to understand the
comparative merits of business opportunities.
c. Though information for applying capital
budgeting techniques are futuristic, it provides useful
information for decision making.
d. Helps in selection between multiple machines.

Yes, the answer is correct.

Score: 1
Accepted Answers:
a. It helps us to assess the performance of managers
in efficient deployment of capital.

9) A business contract requires ₹600 initial 1 point

investment. It generates an annual net cash flow of ₹200
for five years and returns no salvage value at the end of
the business horizon. If required, used the rate of return
@ 10%. Estimate the net present value in rounded full
Rupee (rounded off to Rupee)? The present value
multiplication factor for 10% discount rate for 5 years is
3.79.

a. ₹ 569
b. ₹ 258
c. ₹ 358
d. ₹ 158

Yes, the answer is correct.

Score: 1
Accepted Answers:
d. ₹ 158

10) What is hurdle rate? 1 point

a. It is the internal rate of return of a project.

b. It is the rate at which the payback period is
estimated by discounting the future cash flow.
c. It is the minimum rate of return on equity from
a project for it to be favorably considered.
d. It is the minimum rate of return that a project
must generate for it to be acceptable by a company.

Yes, the answer is correct.

Score: 1
Accepted Answers:
d. It is the minimum rate of return that a project must
generate for it to be acceptable by a company.