Chapter 7: source and coverage limits

# Investment Decisions boundaries
Official PDF: https://resource.cdn.icai.org/87745bos280825-ch7.pdf . Read capital process/classification, incremental dated cashflows and financing/depreciation/WC/disposal rules, payback/ARR/NPV/PI/IRR/MIRR, ranking conflicts/rationing/unequal lives and replacement.
Page66 NPV sign line prints outflow minus PVinflows yet a positive result for PV97.922 minus cost80. Exercises use standard PVinflows minus outflows and preserve the printed sign conflict; no verified erratum claimed.
Page31 highest-PI selection for mutuallyexclusive choices needs scale/capital-constraint context. Pack includes one-year A50/70 andB100/130 where A higherPI/IRR but B higherNPV at10% with no capital shortage. Indivisible constrained projects require feasible-portfolio enumeration, not a universal greedy individual NPV/PI ordering. Divisible partial-value scaling and dependencies explicit.
Page41 textbook reinvestment discussion retained as a boundary: NPVdiscount valuation does not require actual receipts literally reinvested at the discount rate; MIRR explicitly supplies finance/reinvestment/horizon. Nonconventional roots10/20% not silently converted to one highestIRR. Interpolation approximate, root residual checked.
Blockasset/disposal/loss-tax treatment is not blanketcurrent-law. Taxbook basis, immediate usable tax/refund, depreciation, deductions and terminal net amounts are exercise facts; real taxblock/otherassets/relief eligibility need verification. Financingaddback aftertax and WACC/unleveredcashflows consistent; no double-interest deduction. No automatic fullWC recovery outside explicitcase.
ARRaccountingprofit and initialasset/initialtotal/averageassetplusWC bases named. Fractionalordinary/discountedpayback requires explicit conventional interpolation/uniform timing; strictyearenddates recoveronlyatreceipt dates. Unequal-lifeEAV/commonchain needs justified compatible service/repeatability. Nominalcash/nominalrate matches realcash/realrate. EPS/positiveexpectedNPV not actualcash/payment guarantee.
Original indicative capped marking; private chapter preparation, not official suggestedanswers or officialbankcompletion. No publicdeployment/G1/AuthFirestore/spending/oldledgerchanges.