Q. An increase in marginal cost of capital and the capital rationing are two arising complications of

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Q. An initial cost is $6000 and the probability index is 5.6 then the present value of cash flows will be

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Q. In large expansion programs, the increased riskiness and the floatation cost associated with project can cause

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Q. The cash inflows are the revenues of project and are represented by

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Q. The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be

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Q. The project whose cash flows are less than the capital invested for required rate of return then the net present value will be

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Q. A type of project whose cash flows would not depend on each other is classified as

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Q. The net present value, profitability index, payback and discounted payback are the methods to

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Q. The required increasing in current assets and an increasing in current liabilities is subtracted to calculate

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Q. The cash flows that could be generated from an owned asset by the company but not use in project are classified as

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Q. In capital budgeting, the cost of capital is used as discount rate and is based on pre-determines

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Q. The economists consider the effects of the started project on other parts of company or on the environment of the company is called

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Q. The situation in which the company replaces existing assets with new assets is classified as

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Q. The relevant cash flow which company expects when it implements the project is classified as

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Q. The free cash flow is $12000, an operating cash flow is $4000, an investment outlay cash flow is $5000 then the salvage cash flow would be

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Q. The cash flows that should be considered for the decision in hand are classified as

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Q. The nominal interest rates and the nominal cash flows are usually reflected the

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Q. The net investment in operating capital is $5000 and the net operating profit after taxes is $8000 then the free cash flow would be

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Q. The situation in which the new business reduces an existing business of the firm is classified as

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Q. In the cash flow estimation and risk analysis, the real rate will be equal to nominal rate if there is

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