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26. If the payback period is 4 years and the uniform increases in cash flows per year is $2750000, then the net initial investment can be
a. $10,511,000
b. $12,105,000
c. $1,100,000
d. $11,000,000
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Answer: (d).$11,000,000

27. If the real rate is 16% and an inflation rate is 8%, then the nominal rate of return will be
a. 27.28%
b. 25.28%
c. 22.28
d. 21.28
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Answer: (b).25.28%

28. The method, which calculates the time to recoup initial investment of project in form of expected cash flows is known as
a. net value cash flow method
b. payback method
c. single cash flow method
d. lean cash flow method
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Answer: (b).payback method

29. The vertically upward dimension of cost analysis is also called
a. project dimension
b. accounting-period dimension
c. back-flush accounting dimension
d. lean accounting dimension
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Answer: (b).accounting-period dimension

30. The rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as
a. nominal rate of return
b. accrual accounting rate of return
c. real rate of return
d. required rate of return
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Answer: (a).nominal rate of return

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