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Basics of Capital Budgeting Evaluating Cash Flows

The cash flow which starts negative then positive then again positive cash flow is classified as ___________?

June 21, 2022October 25, 2021 by admin
The cash flow which starts negative then positive then again positive cash flow is classified as ___________?

A. normal costs
B. non-normal costs
C. non-normal cash flow
D. normal cash flow

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The cash outflows are the costs of project and are represented by _________?

June 21, 2022October 25, 2021 by admin
The cash outflows are the costs of project and are represented by _________?

A. negative numbers
B. positive numbers
C. hurdle number
D. relative number

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

If two independent projects having hurdle rate then both projects should ___________?

June 21, 2022October 25, 2021 by admin
If two independent projects having hurdle rate then both projects should ___________?

A. be accepted
B. not be accepted
C. have capital acceptance
D. have return rate acceptance

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The life that maximizes net present value of an asset is classified as _________?

June 21, 2022October 25, 2021 by admin
The life that maximizes net present value of an asset is classified as _________?

A. minimum life
B. present value life
C. economic life
D. transaction life

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The sum of discounted cash flows is best defined as ___________?

June 21, 2022October 25, 2021 by admin
The sum of discounted cash flows is best defined as ___________?

A. technical equity
B. defined future value
C. project net present value
D. equity net present value

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The situation in which one project is accepted while rejecting an other project in comparison is classified as __________?

June 21, 2022October 25, 2021 by admin
The situation in which one project is accepted while rejecting an other project in comparison is classified as __________?

A. present value consent
B. mutually exclusive
C. mutual project
D. mutual consent

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The first step in calculation of net present value is to find out ________?

June 21, 2022October 25, 2021 by admin
The first step in calculation of net present value is to find out ________?

A. present value of equity
B. future value of equity
C. present value cash flow
D. future value of cash flow

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The cash flows occurring with more than one change in sign of cash flow are classified as __________?

June 21, 2022October 25, 2021 by admin
The cash flows occurring with more than one change in sign of cash flow are classified as __________?

A. non-normal cash flow
B. normal cash flow
C. normal costs
D. non-normal costs

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

If the net present value is positive then the profitability index will be ___________?

June 21, 2022October 25, 2021 by admin
If the net present value is positive then the profitability index will be ___________?

A. greater than two
B. equal to
C. less than one
D. greater than one

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The present value of future cash flows is divided by an initial cost of the project to calculate __________?

June 21, 2022October 25, 2021 by admin
The present value of future cash flows is divided by an initial cost of the project to calculate __________?

A. negative index
B. exchange index
C. project index
D. profitability index

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs
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