E-PolyLearning

31. The process of making long term decisions, for capital investment in the projects is called
a. lead budgeting
b. lean budgeting
c. capital budgeting
d. relevant budgeting
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Answer: (c).capital budgeting

32. The dimensional analysis of cost includes
a. horizontally across dimension
b. horizontally upward dimension
c. vertically upward dimension
d. both a and c
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Answer: (d).both a and c

33. The capital budgeting method to analyze information of financials include
a. internal rate of return
b. accrual accounting rate of return
c. net present value
d. all of above
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Answer: (d).all of above

34. The payback period is multiplied for constant increase in yearly future cash flows to calculate
a. cash value of money
b. net initial investment
c. net future value
d. time value of money
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Answer: (b).net initial investment

35. The rate of return, which is made up of risk free and business risk element 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: (c).real rate of return