Q. The graph which is plotted for projected net present value and capital rates is called

View solution

Q. A modified internal rate of return is considered as present value of costs and is equal to

View solution

Q. The set of projects or set of investments to maximize the firm value is classified as

View solution

Q. A point where the profile of net present value crosses the horizontal axis at the plotted graph indicates the project

View solution

Q. The modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is

View solution

Q. The payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as

View solution

Q. In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as

View solution

Q. In capital budgeting, a negative net present value results in

View solution

Q. The number of years forecasted to recover an original investment is classified as

View solution

Q. In capital budgeting, the term of bond which has great sensitivity to interest rates is

View solution

Q. The process in which the managers of the company identify projects to add value is classified as

View solution

Q. A discount rate which is equal to the present value of TV to the project cost present value is classified as

View solution

Q. An uncovered cost at the start of the year is $300, full cash flow during recovery year is $650 and prior years to full recovery is 4 then payback would be

View solution

Q. The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be

View solution

Q. The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be

View solution

Q. The profitability index in capital budgeting is used for

View solution

Q. Other factors held constant, the greater project liquidity is because of

View solution

Q. In calculation of internal rate of return, an assumption states that received cash flow from the project must

View solution

Q. In capital budgeting, the number of non-normal cash flows having internal rate of returns are

View solution

Q. An internal rate of return in capital budgeting can be modified to make it the representative of

View solution