Banking Officer Exam Template With Answers Page 18

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Bank of India Banking Officer Paper – 2017 (Practice Set)
111. Ramesh has the option of investing Rs.60000
d. 25.68%
at 10% p.a with annual compounding for 3 years.
It
114. On the basis of Internal Rate of Return, under
will fetch him maturity value of Rs.96000. What
what situation a project should be taken up for
will be the gain or loss of Ramesh in terms of
investment:
the present value:
a. When IRR= market interest rate
Rs.19600 loss
b. When IRR < capital cost
b. Rs.22070 loss
c. When IRR > capital cost
c. Rs.16090 profit
d. When IRR = capital cost
d. Rs.16140 profit
115. An equipment costing Rs.1 lac with a useful
life of 5 years was purchased. Its salvage value is
112. A difference (deficit of surplus) between the
estimated at Rs.10000. What is the amount of
total amount of present value of future cash flows
depreciation for the 2nd year and 5th year at
double declining balance method.
and initial investment in the project is called:
a. 24000,2960
a. Internal rate of return
b. 25000,3000
b. Net present value
c. 26000,3140
c. Pay back
d. 28000,3360
d. Return on the project
116. The valuation of assets is done at their cost
113. An investment of Rs.140000 is made in a
price or market price, as per which o the following
project that generates a profit of Rs.60000 each in
the 1st
accounting standards:
year, 2nd year, 3rd year and 4th year. What is
Money measurement concept
internal rate of return (IRR) of the project:
b. Going concern concept
a. 22.98%
c. Cost concept
b. 23.22%
d. Dual aspect concept
c. 24.65%
Page 18

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