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Finance Mcqs

The cash flows occurring with more than one change in sign of cash flow are classified as __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
The cash flows occurring with more than one change in sign of cash flow are classified as __________?

A. non-normal cash flow
B. normal cash flow
C. normal costs
D. non-normal costs

The cash flows occurring with more than one change in sign of cash flow are classified as __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The present value of future cash flows is divided by an initial cost of the project to calculate __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
The present value of future cash flows is divided by an initial cost of the project to calculate __________?

A. negative index
B. exchange index
C. project index
D. profitability index

The present value of future cash flows is divided by an initial cost of the project to calculate __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

A project which have one series of cash inflows and results in one or more cash outflows is classified as __________

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
A project which have one series of cash inflows and results in one or more cash outflows is classified as __________

A. abnormal costs
B. normal cash flows
C. abnormal cash flow
D. normal costs

A project which have one series of cash inflows and results in one or more cash outflows is classified as __________ Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is _________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is _________?

A. 8200
B. 16000
C. 0.0064
D. 1562.5

The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is _________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The situation in which the firm limits the expenditures on capital is classified as __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
The situation in which the firm limits the expenditures on capital is classified as __________?

A. optimal rationing
B. capital rationing
C. marginal rationing
D. transaction rationing

The situation in which the firm limits the expenditures on capital is classified as __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

An internal rate of return in capital budgeting can be modified to make it the representative of __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
An internal rate of return in capital budgeting can be modified to make it the representative of __________?

A. relative outflow
B. relative inflow
C. relative cost
D. relative profitability

An internal rate of return in capital budgeting can be modified to make it the representative of __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In capital budgeting, the number of non-normal cash flows having internal rate of returns are _________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
In capital budgeting, the number of non-normal cash flows having internal rate of returns are _________?

A. one
B. multiple
C. accepted
D. non-accepted

In capital budgeting, the number of non-normal cash flows having internal rate of returns are _________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In calculation of internal rate of return, an assumption states that received cash flow from the project must __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
In calculation of internal rate of return, an assumption states that received cash flow from the project must __________?

A. be reinvested
B. not be reinvested
C. be earned
D. not be earned

In calculation of internal rate of return, an assumption states that received cash flow from the project must __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

Other factors held constant, the greater project liquidity is because of ___________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
Other factors held constant, the greater project liquidity is because of ___________?

A. less project return
B. greater project return
C. shorter payback period
D. greater payback period

Other factors held constant, the greater project liquidity is because of ___________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs