E-PolyLearning

41. According to net present value, the projects that would be acceptable must have a
a. negative net present value
b. zero net present value
c. positive net present value
d. both b and c
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Answer: (d).both b and c

42. The cash flows method, used by net present value method and internal rate of return are
a. vertical cash flows
b. discounted cash flows
c. lean cash flows
d. future cash flows
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Answer: (b).discounted cash flows

43. The working capital cash outflow, cash outflow to buy machine and cash inflow from machine are the examples of
a. cash flow from operations
b. terminal disposal of investment
c. net initial investment
d. average return on investment
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Answer: (c).net initial investment

44. The decrease in purchasing power of any monetary unit such as euro, dollars etc. is classified as
a. net investment parity
b. inflation
c. purchasing parity
d. buying parity
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Answer: (b).inflation

45. If tax operating income is $885000 per year and the net initial investment is $35750000 then increase in average is
a. 0.475% per year
b. 4.475% per year
c. 3.475% per year
d. 2.475% per year
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Answer: (d).2.475% per year