E-PolyLearning

36. The sum of returned working capital and net initial investment is divided by 2 to calculate
a. increase in operating income
b. average investment over five years
c. average capital invested
d. average rate of return
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Answer: (b).average investment over five years

37. The project's expected monetary loss or gain by discounting all cash outflows and inflows, using required rate of return is classified as
a. net present value
b. net future value
c. net discounted value
d. net recorded cash value
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Answer: (a).net present value

38. The rate of required return to cover the risk of investment, in absence of inflation is classified as
a. real rate of return
b. required rate of return
c. nominal rate of return
d. none of above
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Answer: (a).real rate of return

39. Annual earned income is divided from a project by capital invested to calculate
a. accrual accounting rate of return
b. returned working capital
c. increase in expected average annual
d. decrease in expected average annual
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Answer: (a).accrual accounting rate of return

40. The horizontally across 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: (a).project dimension