A. normal costs
B. non-normal costs
C. non-normal cash flow
D. normal cash flow
Finance Mcqs
In capital budgeting, two projects having cost of capital as 12% is classified as ……….?
A. hurdle rate
B. capital rate
C. return rate
D. budgeting rate
The cash outflows are the costs of project and are represented by ………?
A. negative numbers
B. positive numbers
C. hurdle number
D. relative number
If two independent projects having hurdle rate then both projects should ………..?
A. be accepted
B. not be accepted
C. have capital acceptance
D. have return rate acceptance
The 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
The sum of discounted cash flows is best defined as ………..?
A. technical equity
B. defined future value
C. project net present value
D. equity net present value
The situation in which one project is accepted while rejecting an other project in comparison is classified as ……….?
A. present value consent
B. mutually exclusive
C. mutual project
D. mutual consent
The 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
The cash flows occurring with more than one change in sign of cash flow are classified as ……….?
A. non-normal cash flow
B. normal cash flow
C. normal costs
D. non-normal costs
If the net present value is positive then the profitability index will be ………..?
A. greater than two
B. equal to
C. less than one
D. greater than one