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Finance Mcqs

Other factors held constant, but the lesser project liquidity is because of __________?

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

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

Other factors held constant, but the lesser project liquidity is because of __________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In cash flow analysis, the two projects are compared by using common life, is classified as _________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
In cash flow analysis, the two projects are compared by using common life, is classified as _________?

A. transaction approach
B. replacement chain approach
C. common life approach
D. Both B and C

In cash flow analysis, the two projects are compared by using common life, is classified as _________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

An uncovered cost at the start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating ____________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
An uncovered cost at the start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating ____________?

A. original period
B. investment period
C. payback period
D. forecasted period

An uncovered cost at the start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating ____________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be ________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be ________?

A. 5 years
B. 3.5 years
C. 4 years
D. 4.5 years

An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be ________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

The relationship between Economic Value Added (EVA) and the Net Present Value (NPV) is considered as _________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
The relationship between Economic Value Added (EVA) and the Net Present Value (NPV) is considered as _________?

A. valued relationship
B. economic relationship
C. direct relationship
D. inverse relationship

The relationship between Economic Value Added (EVA) and the Net Present Value (NPV) is considered as _________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

In the mutually exclusive projects, the project which is selected for comparison with others must have _________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
In the mutually exclusive projects, the project which is selected for comparison with others must have _________?

A. higher net present value
B. lower net present value
C. zero net present value
D. all of the above

In the mutually exclusive projects, the project which is selected for comparison with others must have _________? Read More »

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs

A project whose cash flows are more than the capital invested for rate of return then the net present value will be _________?

Basics of Capital Budgeting Evaluating Cash Flows, Finance Mcqs /
A project whose cash flows are more than the capital invested for rate of return then the net present value will be _________?

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

A project whose cash flows are more than 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