Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Finance Mcqs

The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be ___________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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 present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be ___________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be ____________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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

The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be ____________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

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 _________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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

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 _________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

A discount rate which is equal to the present value of TV to the project cost present value is classified as _________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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

A discount rate which is equal to the present value of TV to the project cost present value is classified as _________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The process in which the managers of the company identify projects to add value is classified as __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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

The process in which the managers of the company identify projects to add value is classified as __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In capital budgeting, the term of bond which has great sensitivity to interest rates is __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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

In capital budgeting, the term of bond which has great sensitivity to interest rates is __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The number of years forecasted to recover an original investment is classified as ___________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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

The number of years forecasted to recover an original investment is classified as ___________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as __________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
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

In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs