A. optimal capital budget
B. minimum capital budget
C. maximum capital budget
D. greater capital budget
Basics of Capital Budgeting Evaluating Cash Flows
A modified internal rate of return is considered as present value of costs and is equal to ________?
A. p.v of hurdle rate
B. fv of hurdle rate
C. p.v of terminal value
D. fv of terminal value
The graph which is plotted for projected net present value and capital rates is called ___________?
A. net loss profile
B. net gain profile
C. net future value profile
D. net present value profile
The projects which are mutually exclusive but different on scale of production or time of completion than the _________?
A. external return method
B. net present value of method
C. net future value method
D. internal return method
In internal rate of returns, the discount rate which forces the net present values to become zero is classified as ___________?
A. positive rate of return
B. negative rate of return
C. external rate of return
D. internal rate of return
In independent projects evaluation, the results of internal rate of return and net present value lead to __________?
A. cash flow decision
B. cost decision
C. same decisions
D. different decisions
In capital budgeting, an internal rate of return of the project is classified as its __________?
A. external rate of return
B. internal rate of return
C. positive rate of return
D. negative rate of return
Other factors held constant, but the lesser project liquidity is because of __________?
A. shorter payback period
B. greater payback period
C. less project return
D. greater project return
In cash flow analysis, the two projects are compared by using common life, is classified as _________?
A. transaction approach
B. replacement chain approach
C. common life approach
D. Both B and C
An uncovered cost at the start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating ____________?
A. original period
B. investment period
C. payback period
D. forecasted period