B. Zero(Correct)
C. Positive
D. Independent
Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be_________?
B. Zero(Correct)
C. Positive
D. Independent
Finance Mcqs
B. Zero(Correct)
C. Positive
D. Independent
Other factors held constant, greater project liquidity is because of___________?
B. Greater project return
C. Shorter payback period(Correct)
D. Greater payback period
An internal rate of return in capital budgeting can be modified to make it representative of_________?
B. Relative inflow
C. Relative cost
D. Relative profitability(Correct)
Situation in which firm limits expenditures on capital is classified as________?
B. Capital rationing(Correct)
C. Marginal rationing
D. Transaction rationing
Cash flows occurring with more than one change in sign of cash flow are classified as________?
B. Normal cash flow
C. Normal costs
D. Non-normal costs(Correct)
If net present value is positive, then profitability index will be__________?
B. Equal to
C. Less than one
D. Greater than one(Correct)
Sum of discounted cash flows is best defined as____________?
B. Defined future value
C. Project net present value(Correct)
D. Equity net present value
Cash outflows are costs of project and are represented by___________?
B. Positive numbers
C. Hurdle number
D. Relative number
In large expansion programs, increased riskiness and flotation cost associated with project can cause_______________?
B. Fall in marginal cost of capital
C. Rise in transaction cost of capital
D. Rise in transaction cost of capital
Reinvestment risk of bonds is higher on__________?
B. High maturity bonds
C. High premium bonds
D. High inflated bonds