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21. The categories of cash flows include
a. net initial investment
b. cash flow from operations after paying taxes
c. cash flow from terminal disposal after paying taxes
d. all of above
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Answer: (d).all of above

22. If the net initial investment is $6850000 and the uniform increases yearly cash flows is $2050000, then payback period will be
a. 3.34 years
b. 4.34 years
c. 5.34 years
d. 6.34 years
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Answer: (a).3.34 years

23. The net initial investment is divided by uniform increasing in future cash flows to calculate
a. discounting period
b. investment period
c. payback period
d. earning period
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Answer: (c).payback period

24. If the nominal rate is 26% and the inflation rate is 12%, then the real rate can be
a. 13.75%
b. 11.65%
c. 12.50%
d. 13.50%
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Answer: (c).12.50%

25. A concept which explains a received money in present time, is more valuable than money received in future is called
a. lead value of money
b. storage value of money
c. time value of money
d. cash value of money
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Answer: (c).time value of money

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