Basics of Capital Budgeting Evaluating Cash Flows Archives | Page 6 of 6

In capital budgeting, the positive net present value results in _________?

June 21, 2022October 25, 2021 by admin

In capital budgeting, the positive net present value results in _________?

A. negative economic value added
B. positive economic value added
C. zero economic value added
D. percent economic value added

An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be ________?

June 21, 2022October 25, 2021 by admin

An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be ________?

A. 5 years
B. 3.5 years
C. 4 years
D. 4.5 years

The relationship between Economic Value Added (EVA) and the Net Present Value (NPV) is considered as _________?

June 21, 2022October 25, 2021 by admin

The relationship between Economic Value Added (EVA) and the Net Present Value (NPV) is considered as _________?

A. valued relationship
B. economic relationship
C. direct relationship
D. inverse relationship

In the mutually exclusive projects, the project which is selected for comparison with others must have _________?

June 21, 2022October 25, 2021 by admin

In the mutually exclusive projects, the project which is selected for comparison with others must have _________?

A. higher net present value
B. lower net present value
C. zero net present value
D. all of the above

A project whose cash flows are more than the capital invested for rate of return then the net present value will be _________?

June 21, 2022October 25, 2021 by admin

A project whose cash flows are more than the capital invested for rate of return then the net present value will be _________?

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