Punjab Technical University 2007-5th Sem M.B.A III/I CAPITAL BUDGETING - Question Paper

CAPITAL BUDGETING
M.B.A
MB-517(O)
IIIrd /IVth Semester (2096)

Time: three Hours Max Marks:75

Note: part ‘A’ is compulsory. Attempt 9 ques. from part ‘B’.
part ‘A’
1, Write Short note on the subsequent in 40-60 words
(a) (a). define the meaning of capital.
(b) What do you mean by budgeting?
(c) Define investment.
(d) What do you mean by cost of Capital?
(e) Define steps of pay back Method.
(f) What do you mean by risk?
(g) What is capital Rationing?
(h) Define opportunity cost.
(i) What is Operating Lease?
(j) How viability of the project determined?
(k) Explain in detail Expected Return.
(l) What is Beta?
(m) What do you mean b project?
(n) What is the importance of Capital Budgeting ?
(o) Define Leveraged Leases. 15 x two = 30
part –B
2. explain in detail Introduction and kinds of Investment decision.
3. elaborate the objectives of Capital Budgeting?
4. explain in detail Estimating Project Characteristics.
5. discuss the method of ‘NPV’ with the help of an example.
6. Why there is Conflict ranging from NPV and IRR.
7. explain the different Methods to measure the Cost of Capital.
8. discuss single product analysis under risk.
9. explain Decision tree Analysis with the help of an example.
10. discuss CAMP & APT Model.
11. How multiple Product Capital Budgeting planning is done?
12. explain in detail the kinds of leasing.
13. Write in detailed note on Capital Rationing.
9 x five = 45

Earning:   Approval pending.