NPTEL Entrepreneurship Essentials Week 11 Assignment Answers 2025
1. Read the following statements regarding estimating discounted net present value and answer the question following them.
A. It is assumed that all cash flows other than the initial investment occur at the end of respective periods. B. All cash flows generated by an investment project are immediately reinvested at a rate of return equal to the IRR of the project. C. All cash flows generated by an investment project are immediately reinvested at a rate of return equal to the discount rate. D. All cash flows other than the initial investment occur at the beginning of respective periods.
Which of the above are the two correct major assumptions of discounted net present value estimation?
a. A & C
b. A & D
c. B & D
d. C & D
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2. Which of the following statements is incorrect?
a. A project may look attractive based on the discounted net present value method but may not be so based on break-even analysis.
b. The hurdle rate is the minimum rate of return below which a company will not accept a project.
c. The break-even point estimation takes into account the time value of money.
d. The payback period method does not take into account the time value of money.
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3. An article appeared in the Vogue journal with the title “Netflix of Eye Wear” and that led to a huge number of customer registration for purchasing the product. The article itself was influenced by a word of mouth by one of the faculty members of the university where the founders were studying. Which marketing method did Warby Parker use?
a. Public relations.
b. Content marketing.
c. Social media.
d. Advertisement.
e. Influencer marketing
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4. Which of the following is not part of a great launch?
a. Empathizing to define the pain-point.
b. Timing and cross-functional readiness
c. Influencers/Customers.
d. Pre-brief.
e. Messaging.
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5. Which of the following is not part of the go-to-market strategies?
a. Market segmentation and strategic product roadmap, marketing strategies.
b. Product-market-fit, competitive landscape, and pricing model.
c. Distribution/ Channel/ Partner model.
d. Engagement with the early majority of customers for achieving growth.
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6. Which of the following is not true?
a. Customer acquisition cost must be less than the lifetime value.
b. If our business does not offer the choice for a customer to come back repeatedly, we should not spend as much money to acquire customers as we earn from that customer in the first transaction.
c. The number of registered users is definitely regarded as an important metric that can be highlighted during a presentation before investors since investors would view that as a guaranteed success factor.
d. Network-based companies such as Amazon & Flipkart can afford to spend a lot of money to acquire customers at a high burn rate since they offer many choices to customers to come back repeatedly.
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7. Which of the following is not part of the capital budgeting decision process
a) Comparing two or more business models
b) Estimating the acceptability of a project based on the expected return
c) Selection between multiple machines based on the cash flow attributed to the respective machines.
d) Estimating the break-even point
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8. Which of the following statements is NOT correct about capital budgeting?
a) It helps us to assess the performance of managers in the efficient deployment of capital.
b) It helps entrepreneurs to understand the comparative merits of business opportunities.
c) Though information for applying capital budgeting techniques is futuristic, it provides useful information for decision-making.
d) Helps in selection between multiple machines and ‘buy or lease’ decisions.
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9. A business contract requires ₹700 initial investment (year zero). It is likely to generate an annual net cash flow of ₹200 for five years beginning from year one and return no salvage value at the end of the business horizon. If required, use the rate of return @ 10%. Estimate the net present value in rounded full Rupee (rounded off to Rupee)? The present value multiplication factor for 10% discount rate for 5 years is 3.79.
a) ₹ 58
b) ₹ 258
c) ₹ 358
d) ₹ 158
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10. What is hurdle rate?
a. It is the internal rate of return of a project.
b. It is the rate at which the payback period is estimated by discounting the future cash flow.
c. It is the minimum rate of return on equity from a project for it to be favorably considered.
d. It is the minimum rate of return that a project must generate for it to be acceptable by a company.
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