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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 __________

June 21, 2022October 25, 2021 by admin
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

Categories 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 _________?

June 21, 2022October 25, 2021 by admin
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

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

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

June 21, 2022October 25, 2021 by admin
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

Categories 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 __________?

June 21, 2022October 25, 2021 by admin
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

Categories 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 _________?

June 21, 2022October 25, 2021 by admin
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

Categories 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 __________?

June 21, 2022October 25, 2021 by admin
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

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

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

June 21, 2022October 25, 2021 by admin
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

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The profitability index in capital budgeting is used for __________?

June 21, 2022October 25, 2021 by admin
The profitability index in capital budgeting is used for __________?

A. negative projects
B. relative projects
C. evaluate projects
D. earned projects

Categories 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 ___________?

June 21, 2022October 25, 2021 by admin
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

Categories 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 ____________?

June 21, 2022October 25, 2021 by admin
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

Categories Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs
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