B. Cost budgeting
C. Book value budgeting
D. Equity budgeting
Process in which managers of company identify projects to add value is classified as__________?
B. Cost budgeting
C. Book value budgeting
D. Equity budgeting
Financial Management Mcqs
B. Cost budgeting
C. Book value budgeting
D. Equity budgeting
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
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