Life that maximizes net present value of an asset is classified as__________?
A. Minimum life
B. Present value life
C. Economic life
D. Transaction life
Financial Management Mcqs
First step in calculation of net present value is to find out_________?
First step in calculation of net present value is to find out_________?
A. Present value of equity
B. Future value of equity
C. Present value cash flow
D. Future value of cash flow
Present value of future cash flows is divided by an initial cost of project to calculate_______?
Present value of future cash flows is divided by an initial cost of project to calculate_______?
A. Negative index
B. Exchange index
C. Project index
D. Profitability index
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__________?
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
Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as____________?
Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as____________?
A. Valued relationship
B. Economic relationship
C. Direct relationship
D. Inverse relationship
Profitability index in capital budgeting is used for_________?
Profitability index in capital budgeting is used for_________?
A. Negative projects
B. Relative projects
C. Evaluate projects
D. Earned projects
In mutually exclusive projects, project which is selected for comparison with others must have____________?
In mutually exclusive projects, 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 above
A project whose cash flows are more than capital invested for rate of return then net present value will be___________?
A project whose cash flows are more than capital invested for rate of return then net present value will be___________?
A. Positive
B. Independent
C. Negative
D. Zero
An equity multiplier is multiplied to return on assets to calculate_________?
An equity multiplier is multiplied to return on assets to calculate_________?
A. Return on assets
B. Return on multiplier
C. Return on turnover
D. Return on stock
Process of comparing company results with other leading firms is considered as____________?
Process of comparing company results with other leading firms is considered as____________?
A. Comparison
B. Analysis
C. Bench marking
D. Return analysis