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Basics of Capital Budgeting Evaluating Cash Flows

The set of projects or set of investments to maximize the firm value is classified as __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
The set of projects or set of investments to maximize the firm value is classified as __________?

A. optimal capital budget
B. minimum capital budget
C. maximum capital budget
D. greater capital budget

The set of projects or set of investments to maximize the firm value is classified as __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

A modified internal rate of return is considered as present value of costs and is equal to ________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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

A modified internal rate of return is considered as present value of costs and is equal to ________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The graph which is plotted for projected net present value and capital rates is called ___________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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 graph which is plotted for projected net present value and capital rates is called ___________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The projects which are mutually exclusive but different on scale of production or time of completion than the _________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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

The projects which are mutually exclusive but different on scale of production or time of completion than the _________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In internal rate of returns, the discount rate which forces the net present values to become zero is classified as ___________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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 internal rate of returns, the discount rate which forces the net present values to become zero is classified as ___________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In independent projects evaluation, the results of internal rate of return and net present value lead to __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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 independent projects evaluation, the results of internal rate of return and net present value lead to __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In capital budgeting, an internal rate of return of the project is classified as its __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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

In capital budgeting, an internal rate of return of the project is classified as its __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

Other factors held constant, but the lesser project liquidity is because of __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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

Other factors held constant, but the lesser project liquidity is because of __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In cash flow analysis, the two projects are compared by using common life, is classified as _________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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

In cash flow analysis, the two projects are compared by using common life, is classified as _________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

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 ____________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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

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 ____________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs