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

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

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

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

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

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

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

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

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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

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

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

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Q. The profitability index in capital budgeting is used for

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

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

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

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

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Q. The situation in which the firm limits the expenditures on capital is classified as

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Q. The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is

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Q. A project which have one series of cash inflows and results in one or more cash outflows is classified as

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Q. The present value of future cash flows is divided by an initial cost of the project to calculate

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