Chapter Wise Question list of Capital Investment Decision (Year 2018, 2019)

Chapter-1 Capital Budgeting Cash Flow Principles

1. Define capital expenditure. Explain the conventional and non-conventional cash-flow. MBA 2020
Or. How does non-conventional cash flows differ from conventional cash flows patterns? NU 2019
Chapter-2 the Capital Budgeting Techniques
1. What is capital budgeting decision? NU 2018
2. What is capital budgeting? Why are capital budgeting decisions so important to the success of a firm? 19
3. Differentiate between independent and mutually exclusive projects. NU 2019
4. Define capital budgeting. What are the techniques of capital budgeting? MBA 2020
5. What is payback period? NU 2019
6. Discuss the decision criteria and limitations of payback period. NU 2019
7. State the steps in capital budgeting decision. NU 2018
8. Define multiple internal rates of return (MIRR). What are' the decision criterion of MIRR? NU 2018
9. How is a net present value profile used to compare project? What causes conflicts in the ranking of
project via NPV and IRR? NU 2018
10. How does the concept of Accept Reject Approach differ from Raking Approach? MBA 2020
11. Do the net present value (NPV) and internal rate of return (IRR) always agree with respect to accept-
reject decisions? With respect to ranking decisions? Explain. MBA 2020
12. What are the basic conditions that can lead to conflicts between NPV and IRR? If a conflict exist should
the capital budgeting decision be made on the basis of the NPV or IRR method? Why? NU 2019
13. Short Note on Annualized net present value & Modified IRR

Chapter-3 Basic Risk Adjusted Techniques in Capital Budgeting

1. Define risk-adjusted discount rate (RADR). What are the critical factors to be observed? NU 2018
2. Discuss the techniques of evaluating projects risk? MBA 2020
3. What is CAPM NU 2018
4. State the assumptions of CAPM. NU 2018
5. What is the primary difference between the APT and the CAPM? NU 2019
6. Short Note: CAPM and APT
Chapter-4 Lease Finance
1. Distinguish between single investor lease and leverage lease. NU 2019
2. Define lease financing. What are the differences between operating lease and financial lease? NU 2018
3. What is sale and lease back? NU 2019
4. Short Note: Cross Border Lease.

Chapte-5 Leverage and Capital Structure

1. What is the major benefit of debt financing? How does it affect the firm's cost of debt? MBA 2020
2. Define the optimum capital structure. What are the factors influencing capital structure? NU 2018
3. How EBIT and EPS are affected by the use of operating and financial leverage? NU 2019
4. Describe in brief MM Model, Miller Model and trade off theory of capital structure. NU 2019

Chapter-6 Capital Rationing

1. Differentiate between the concepts of Unlimited Funds and Capital Rationing. MBA 2020
2. Define capital rationing with a suitable example.MBA 2020
3. Discuss the potential advantages and disadvantages of Capital Rationing.MBA 2020
4. What is capital rationing? NU 2019
5. Define capital rationing. Describe the types of capital rationing. NU 2018
6. Distinguish between hard capital rationing and soft capital rationing. NU 2019