JCB (Which makes agricultural and construction equipment) has the opportunity to purchase a new factory today that will provide them with a Rs50 million return four years from now If prevailing interest rates are 6 percent, what is the maximum that the project can cost for JCB to be willing to undertake the project ?

Related Mcqs:

Which of the following should cause the price of a share of stock to rise ?

A. None of these answers B. An increase in expected dividends C. A reduction in aggregate risk D. A reduction in the interest rate E. All of these answers...

Share prices will follow a random walk if ?

A. shares are overvalued B. people behave irrationally when choosing shares C. markets reflect all available information in a rational way D. shares are undervalued...

It is difficult for an actively managed investment fund to outperform an index fund because ?

A. stock markets tend to be inefficient B. all of these answers C. index funds are able to buy undervalued stocks D. actively managed funds trade more often and charge fees for their alleged expertise...

If a depositor puts Rs100 in a bank amount that earns 4 percent interest compounded annually, how much will be in the account after five years ?

A. Rs400.00 B. Rs 104.00 C. Rs 121.67 D. Rs 123.98...

An increase in the prevailing interest rate ?

A. increases the present value of future returns from investment and increases investment B. decreases the present value of future return from investment and decreases investment C. decreases the present value of future returns from investment and increase investment D. increases the present value of future returns from investment and decreases investment...