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

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

View solution

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

View solution

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

View solution

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

View solution

Q. If the net present value is positive then the profitability index will be

View solution

Q. The cash flows occurring with more than one change in sign of cash flow are classified as

View solution

Q. The first step in calculation of net present value is to find out

View solution

Q. The situation in which one project is accepted while rejecting an other project in comparison is classified as

View solution