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Finance Mcqs

The payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as __________?

The payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as __________?

A. discounted payback period
B. discounted rate of return
C. discounted cash flows
D. discounted project cost

The payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is ____________?

The modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is ____________?

A. positive
B. negative
C. zero
D. one

The modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is ____________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

A point where the profile of net present value crosses the horizontal axis at the plotted graph indicates the project ___________?

A point where the profile of net present value crosses the horizontal axis at the plotted graph indicates the project ___________?

A. costs
B. cash flows
C. internal rate of return
D. external rate of return

A point where the profile of net present value crosses the horizontal axis at the plotted graph indicates the project ___________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The set of projects or set of investments to maximize the firm value is classified as __________?

The set of projects or set of investments to maximize the firm value is classified as __________?

A. optimal capital budget
B. minimum capital budget
C. maximum capital budget
D. greater capital budget

The set of projects or set of investments to maximize the firm value is classified as __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

A modified internal rate of return is considered as present value of costs and is equal to ________?

A modified internal rate of return is considered as present value of costs and is equal to ________?

A. p.v of hurdle rate
B. fv of hurdle rate
C. p.v of terminal value
D. fv of terminal value

A modified internal rate of return is considered as present value of costs and is equal to ________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The graph which is plotted for projected net present value and capital rates is called ___________?

The graph which is plotted for projected net present value and capital rates is called ___________?

A. net loss profile
B. net gain profile
C. net future value profile
D. net present value profile

The graph which is plotted for projected net present value and capital rates is called ___________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The projects which are mutually exclusive but different on scale of production or time of completion than the _________?

The projects which are mutually exclusive but different on scale of production or time of completion than the _________?

A. external return method
B. net present value of method
C. net future value method
D. internal return method

The projects which are mutually exclusive but different on scale of production or time of completion than the _________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In internal rate of returns, the discount rate which forces the net present values to become zero is classified as ___________?

In internal rate of returns, the discount rate which forces the net present values to become zero is classified as ___________?

A. positive rate of return
B. negative rate of return
C. external rate of return
D. internal rate of return

In internal rate of returns, the discount rate which forces the net present values to become zero is classified as ___________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In independent projects evaluation, the results of internal rate of return and net present value lead to __________?

In independent projects evaluation, the results of internal rate of return and net present value lead to __________?

A. cash flow decision
B. cost decision
C. same decisions
D. different decisions

In independent projects evaluation, the results of internal rate of return and net present value lead to __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In capital budgeting, an internal rate of return of the project is classified as its __________?

In capital budgeting, an internal rate of return of the project is classified as its __________?

A. external rate of return
B. internal rate of return
C. positive rate of return
D. negative rate of return

In capital budgeting, an internal rate of return of the project is classified as its __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs