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Finance Mcqs

The bonds that are backed by cash flow from project and are sold to finance particular project are classified as ____________?

The bonds that are backed by cash flow from project and are sold to finance particular project are classified as ____________?

A. finance bonds
B. revenue bonds
C. financing bonds
D. project bonds

The bonds that are backed by cash flow from project and are sold to finance particular project are classified as ____________? Read More »

Bond Markets, Finance Mcqs

The net present value, profitability index, payback and discounted payback are the methods to __________?

The net present value, profitability index, payback and discounted payback are the methods to __________?

A. evaluate cash flow
B. evaluate projects
C. evaluate budgeting
D. evaluate equity

The net present value, profitability index, payback and discounted payback are the methods to __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

A type of project whose cash flows would not depend on each other is classified as ____________?

A type of project whose cash flows would not depend on each other is classified as ____________?

A. project net gain
B. independent projects
C. dependent projects
D. net value projects

A type of project whose cash flows would not depend on each other is classified as ____________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The project whose cash flows are less than the capital invested for required rate of return then the net present value will be ___________?

The project whose cash flows are less than the capital invested for required rate of return then the net present value will be ___________?

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

The project whose cash flows are less than the capital invested for required rate of return then the net present value will be ___________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be ____________?

The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be ____________?

A. 0.0319
B. 3.19
C. 0.31 times
D. 5450

The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be ____________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In large expansion programs, the increased riskiness and the floatation cost associated with project can cause ___________?

In large expansion programs, the increased riskiness and the floatation cost associated with project can cause ___________?

A. rise in marginal cost of capital
B. fall in marginal cost of capital
C. rise in transaction cost of capital
D. rise in transaction cost of capital

In large expansion programs, the increased riskiness and the floatation cost associated with project can cause ___________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

An initial cost is $6000 and the probability index is 5.6 then the present value of cash flows will be __________?

An initial cost is $6000 and the probability index is 5.6 then the present value of cash flows will be __________?

A. 25000
B. 28000
C. 33600
D. 30000

An initial cost is $6000 and the probability index is 5.6 then the present value of cash flows will be __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

An increase in marginal cost of capital and the capital rationing are two arising complications of __________?

An increase in marginal cost of capital and the capital rationing are two arising complications of __________?

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

An increase in marginal cost of capital and the capital rationing are two arising complications of __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs