The profitability index in capital budgeting is used for __________?
A. negative projects
B. relative projects
C. evaluate projects
D. earned projects
Finance Mcqs
The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be ___________?
The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be ___________?
A. 0.55
B. 1.82
C. 0.55
D. 0.0182
The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be ____________?
The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be ____________?
A. negative
B. zero
C. positive
D. independent
An uncovered cost at the start of the year is $300, full cash flow during recovery year is $650 and prior years to full recovery is 4 then payback would be _________?
An uncovered cost at the start of the year is $300, full cash flow during recovery year is $650 and prior years to full recovery is 4 then payback would be _________?
A. 3.46 years
B. 2.46 years
C. 5.46 years
D. 4.46 years
A discount rate which is equal to the present value of TV to the project cost present value is classified as _________?
A discount rate which is equal to the present value of TV to the project cost present value is classified as _________?
A. negative internal rate of return
B. modified internal rate of return
C. existed internal rate of return
D. relative rate of return
The process in which the managers of the company identify projects to add value is classified as __________?
The process in which the managers of the company identify projects to add value is classified as __________?
A. capital budgeting
B. cost budgeting
C. book value budgeting
D. equity budgeting
In capital budgeting, the term of bond which has great sensitivity to interest rates is __________?
In capital budgeting, the term of bond which has great sensitivity to interest rates is __________?
A. long-term bonds
B. short-term bonds
C. internal term bonds
D. external term bonds
The number of years forecasted to recover an original investment is classified as ___________?
The number of years forecasted to recover an original investment is classified as ___________?
A. payback period
B. forecasted period
C. original period
D. investment period
In capital budgeting, a negative net present value results in _________?
In capital budgeting, a negative net present value results in _________?
A. zero economic value added
B. percent economic value added
C. negative economic value added
D. positive economic value added
In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as __________?
In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as __________?
A. greater annual annuity method
B. equivalent annual annuity
C. lesser annual annuity method
D. zero annual annuity method