Question No: 1

Question

Mr. A, as a financial consultant, has prepared a feasibility report of a project for XYZ Company that the company is planning to undertake. He has suggested that the project is feasible. The consultancy fee paid to Mr. A will be considered as:
a)Sunk cost
b)Opportunity cost
c)Both sunk cost and opportunity cost
d)Neither sunk cost nor opportunity cost
Question No:2
One would be indifferent between taking and not taking the investment when:
a)NPV is greater than Zero
b)NPV is equal to Zero
c)NPV is less than Zero
d)All of the given options

Answer 1

1. B
2. D