226 Managerial economics and financial aCCOUNTANCY [JNTU-Kakinada]

Frequently Asked Questions & Important Questions

Q1. What is Capital Budgeting? Discuss the characteristics and importance of capital budgeting.

REPEATED
Ans:

(Important Question | Nov.-15, Set-1, Q6(a) | Nov.-15, Set-2, Q6(a) | Nov.-15, Set-3, Q6(a) | Oct./Nov.-19, Set-1, Q7(a)
| Oct./Nov.-19, Set-4, Q7(a))
5
TIMES

For answer refer Unit-V, Q8.

Q2. What is Time Value of Money? Explain the reasons and techniques of Time Value of Money. Give an
example.

REPEATED
Ans: (Important Question | Oct./Nov.-18, Set-2, Q7(b) | Oct./Nov.-19, Set-3, Q7(a))
2
TIMES

For answer refer Unit-V, Q10.

Q3. What is meant by discounting and time value of money? How is it useful in capital budgeting?

Ans: Important Question

For answer refer Unit-V, Q11.

Q4. What are the different methods of appraising project profitability?

REPEATED
3
Ans: (Important Question | Nov.-15, Set-4, Q6(a) | Oct./Nov.-18, Set-1, Q7(a) | Oct./Nov.-19, Set-3, Q7(b)) TIMES

For answer refer Unit-V, Q14.

Q5. Explain briefly Net Present Value technique of capital budgeting.

REPEATED
2
Ans: (Nov.-15, Set-1, Q6(b) | Oct/Nov.-19, Set-1, Q7(b)) TIMES

For answer refer Unit-V, Q18.

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