Question

What does financial feasibility study involve?

a.

Analysis of NPV and IRR

b.

Appraisal and analysis of isolated projects

c.

Determining market demand and price

d.

Evaluating social infrastructure

Posted under IC 89 Management Accounting

Answer: (a).Analysis of NPV and IRR Explanation:Financial feasibility study in Capital Budgeting involves detailed financial analysis, including analysis of NPV (Net Present Value) and IRR (Internal Rate of Return), among other considerations.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What does financial feasibility study involve?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What does Cost-Benefit Analysis in Capital Budgeting assess?

View solution

Q. What is the purpose of Simulation Analysis in Capital Budgeting?

View solution

Q. What is the first step in Simulation Analysis?

View solution

Q. What does Simulation Analysis involve in terms of values and probability distribution?

View solution

Q. What is the last step in Simulation Analysis?

View solution

Q. What characterizes Replacement Projects?

View solution

Q. Why are Mandatory Investments made?

View solution

Q. What is the purpose of analyzing Mandatory Investments?

View solution

Q. What is the primary aim of Project Diversification?

View solution

Q. What characterizes R&D Projects?

View solution

Q. What is the primary consideration in the Pay-back Method for evaluating a capital project?

View solution

Q. How is the payback period calculated?

View solution

Q. What does a shorter payback period indicate in the Pay-back Method?

View solution

Q. What is the primary advantage of the Pay-back Method?

View solution

Q. What criterion does the Pay-back Method emphasize?

View solution

Q. What is a limitation of the Pay-back Method?

View solution

Q. What is one of the limitations of the Pay-back Method that the discounted payback period aims to overcome?

View solution

Q. What is calculated in the Simple Rate of Return method?

View solution

Q. How is the rate of return calculated in the Rate of Return on Average Investment Method?

View solution

Q. What does a higher rate of return indicate in the Rate of Return methods?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Microbiology

Uncover the fascinating world of microbes with our Microbiology category. Delve into...

Drug and Pharmaceutical Biotechnology

Navigate the world of pharmaceuticals and biotechnology with our dedicated category....

Food Engineering

Explore the fascinating world of Food Engineering with our specialized category....

Verbal Reasoning

Sharpen your logical thinking and reasoning abilities with our Verbal Reasoning...

Engineering Materials

Discover the building blocks of engineering with our Engineering Materials category....

Fluid Mechanics

Unlock the mysteries of fluids and their behavior with our Fluid Mechanics category....

Cost Accounting

Dive into the realm of Cost Accounting with our specialized category. Explore cost...

Civil Engineering

Dive into the world of Civil Engineering with our specialized category. Explore the...

Enzyme Technology

Unlock the power of enzymes with our Enzyme Technology category. Explore enzyme...