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The treasury notes that provide returns tied to inflation rate are classified as A. clean price bonds B. discount index bonds C. premium index bondsD. inflation index bonds
The bonds that are backed by cash flow from project and are sold to finance particular project are classified as ____________? A. finance bondsB. revenue bonds C. financing bonds D. project bonds
The net present value, profitability index, payback and discounted payback are the methods to __________? A. evaluate cash flowB. evaluate projects C. evaluate budgeting D. evaluate equity
A type of project whose cash flows would not depend on each other is classified as ____________? A. project net gainB. independent projects C. dependent projects D. net value projects
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 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 cash inflows are the revenues of project and are represented by ___________? A. hurdle number B. relative number C. negative numbersD. positive numbers
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
An initial cost is $6000 and the probability index is 5.6 then the present value of cash flows will be __________? A. 25000 B. 28000C. 33600 D. 30000
An increase in marginal cost of capital and the capital rationing are two arising complications of __________? A. maximum capital budget B. greater capital budgetC. optimal capital budget D. minimum capital budget