{"@context":"https://schema.org/","@type":"Quiz","dateCreated":"2025-07-03T08:17:07.931Z","dateModified":"2025-07-03T08:17:07.931Z","typicalAgeRange":"11-18","educationalLevel":"ICAR AIEEA (PG)","assesses":"Agri Business Management - Project Appraisal Techniques","educationalAlignment":[{"@type":"AlignmentObject","alignmentType":"educationalTopic","targetName":"Project Appraisal Techniques"},{"@type":"AlignmentObject","alignmentType":"educationalSubject","targetName":"Agri Business Management "},{"@type":"AlignmentObject","alignmentType":"educationalExam","targetName":"ICAR AIEEA (PG)"}],"name":"Quiz about Project Appraisal Techniques","about":{"@type":"Thing","name":"Agri Business Management - Project Appraisal Techniques"},"hasPart":[{"@type":"Question","eduQuestionType":"Multiple choice","learningResourceType":"Practice problem","educationalLevel":"intermediate","name":"Question About Project Appraisal Techniques","text":"In project appraisal, Net Present Value (NPV) is calculated by:}","encodingFormat":"text/markdown","comment":{"@type":"Comment","text":"NPV > 0 = Accept project, NPV < 0 = Reject project."},"suggestedAnswer":[{"@type":"Answer","position":0,"encodingFormat":"text/markdown","text":"

Subtracting initial investment from total cash inflows

","comment":{"@type":"Comment","text":"\"\""}},{"@type":"Answer","position":1,"encodingFormat":"text/markdown","text":"

Dividing cash inflows by initial cost

","comment":{"@type":"Comment","text":"\"\""}},{"@type":"Answer","position":2,"encodingFormat":"text/markdown","text":"

Subtracting present value of outflows from present value of inflows

","comment":{"@type":"Comment","text":"\"\""}},{"@type":"Answer","position":3,"encodingFormat":"text/markdown","text":"

Adding future inflows without discounting
\n\n

","comment":{"@type":"Comment","text":"\"\""}}],"acceptedAnswer":{"@type":"Answer","position":2,"encodingFormat":"text/markdown","text":"

Subtracting present value of outflows from present value of inflows

","comment":{"@type":"Comment","text":"NPV > 0 = Accept project, NPV < 0 = Reject project."},"answerExplanation":{"@type":"comment","text":"NPV = PV of Cash Inflows – PV of Cash Outflows. It considers the time value of money — future cash flows are discounted back to present value using a discount rate. A positive NPV means the project is expected to generate profit above the cost of capital."}}}]}

In project appraisal, Net Present Value (NPV) is calculated by:

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The Correct Option is C

Solution and Explanation

Questions Asked in ICAR AIEEA exam