Question:

Which of the following is not a risk factor in capital budgeting ?

A.

industry specific risk factors

B.

competition risk factors

C.

project specific risk factors

D.

interest risk factors

Answer» b. competition risk factors

Question:

Which of the following method of evaluation of capital budgeting proposals focuses on liquidity?

A.

internal rate of return

B.

net present value

C.

accounting rate of return

D.

payback period

Answer» d. payback period

Question:

Time value of Money is based on the principle of:

A.

a stich in time saves nine

B.

a bird in hand; is worth two in a bush.

C.

as you sow; so shall you reap.

D.

hard work pays in the long run

Answer» b. a bird in hand; is worth two in a bush.