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Basics of Capital Budgeting Evaluating Cash Flows

A project which have one series of cash inflows and results in one or more cash outflows is classified as __________

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
A project which have one series of cash inflows and results in one or more cash outflows is classified as __________

A. abnormal costs
B. normal cash flows
C. abnormal cash flow
D. normal costs

A project which have one series of cash inflows and results in one or more cash outflows is classified as __________ Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is _________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is _________?

A. 8200
B. 16000
C. 0.0064
D. 1562.5

The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is _________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The situation in which the firm limits the expenditures on capital is classified as __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
The situation in which the firm limits the expenditures on capital is classified as __________?

A. optimal rationing
B. capital rationing
C. marginal rationing
D. transaction rationing

The situation in which the firm limits the expenditures on capital is classified as __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

An internal rate of return in capital budgeting can be modified to make it the representative of __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
An internal rate of return in capital budgeting can be modified to make it the representative of __________?

A. relative outflow
B. relative inflow
C. relative cost
D. relative profitability

An internal rate of return in capital budgeting can be modified to make it the representative of __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In capital budgeting, the number of non-normal cash flows having internal rate of returns are _________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
In capital budgeting, the number of non-normal cash flows having internal rate of returns are _________?

A. one
B. multiple
C. accepted
D. non-accepted

In capital budgeting, the number of non-normal cash flows having internal rate of returns are _________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In calculation of internal rate of return, an assumption states that received cash flow from the project must __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
In calculation of internal rate of return, an assumption states that received cash flow from the project must __________?

A. be reinvested
B. not be reinvested
C. be earned
D. not be earned

In calculation of internal rate of return, an assumption states that received cash flow from the project must __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

Other factors held constant, the greater project liquidity is because of ___________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
Other factors held constant, the greater project liquidity is because of ___________?

A. less project return
B. greater project return
C. shorter payback period
D. greater payback period

Other factors held constant, the greater project liquidity is because of ___________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be ___________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be ___________?

A. 0.55
B. 1.82
C. 0.55
D. 0.0182

The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be ___________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be ____________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be ____________?

A. negative
B. zero
C. positive
D. independent

The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be ____________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs