A. evaluate cash flow
B. evaluate projects
C. evaluate budgeting
D. evaluate equity
Finance Mcqs
A type of project whose cash flows would not depend on each other is classified as …………?
A. project net gain
B. independent projects
C. dependent projects
D. net value projects
The project whose cash flows are less than the capital invested for required rate of return then the net present value will be ………..?
A. negative
B. zero
C. positive
D. independent
The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be …………?
A. 0.0319
B. 3.19
C. 0.31 times
D. 5450
The cash inflows are the revenues of project and are represented by ………..?
A. hurdle number
B. relative number
C. negative numbers
D. positive numbers
In large expansion programs, the increased riskiness and the floatation cost associated with project can cause ………..?
A. rise in marginal cost of capital
B. fall in marginal cost of capital
C. rise in transaction cost of capital
D. rise in transaction cost of capital
An initial cost is $6000 and the probability index is 5.6 then the present value of cash flows will be ……….?
A. 25000
B. 28000
C. 33600
D. 30000
An increase in marginal cost of capital and the capital rationing are two arising complications of ……….?
A. maximum capital budget
B. greater capital budget
C. optimal capital budget
D. minimum capital budget
In capital budgeting, a technique which is based upon discounted cash flow is classified as ………..?
A. net present value method
B. net future value method
C. net capital budgeting method
D. net equity budgeting method
In estimating value of cash flows, the compounded future value is classified as its ………?
A. terminal value
B. existed value
C. quit value
D. relative value