Q461
Open questionA point where profile of net present value crosses horizontal axis at plotted graph indicates project
Select an option to see the answer and solution.
Commerce · all questionsFinancial Management
Financial Management
practice.
Practice every MCQ with options. Use Show answers when you want the correct option and solution.
1,260
Questions
24/63
Page
Pick an option on a question to see the right answer and solution.
Q462
Open questionModified rate of return and modified internal rate of return with exceed cost of capital if net present value is
Select an option to see the answer and solution.
Q463
Open questionPayback period in which an expected cash flows are discounted with help of project cost of capital is classified as
Select an option to see the answer and solution.
Q464
Open questionIn alternative investments, constant cash flow stream is equal to initial cash flow stream in approach which is classified as
Select an option to see the answer and solution.
Q465
Open questionIn capital budgeting, a negative net present value results in
Select an option to see the answer and solution.
Q466
Open questionNumber of years forecasted to recover an original investment is classified as
Select an option to see the answer and solution.
Q467
Open questionIn capital budgeting, term of bond which has great sensitivity to interest rates is
Select an option to see the answer and solution.
Q468
Open questionProcess in which managers of company identify projects to add value is classified as
Select an option to see the answer and solution.
Q469
Open questionA discount rate which equals to present value of TV to project cost present value is classified as
Select an option to see the answer and solution.
Q470
Open questionAn uncovered cost at start of year is Rs 300, full cash flow during recovery year is Rs 650 and prior years to full recovery is 4 then payback would be
Select an option to see the answer and solution.
Q471
Open questionProject whose cash flows are sufficient to repay capital invested for rate of return then net present value will be
Select an option to see the answer and solution.
Q472
Open questionPresent value of future cash flows is Rs 2000 and an initial cost is Rs 1100 then profitability index will be
Select an option to see the answer and solution.
Q473
Open questionProfitability index in capital budgeting is used for
Select an option to see the answer and solution.
Q474
Open questionOther factors held constant, greater project liquidity is because of
Select an option to see the answer and solution.
Q475
Open questionIn calculation of internal rate of return, an assumption states that received cash flow from project must
Select an option to see the answer and solution.
Q476
Open questionIn capital budgeting, number of non-normal cash flows have internal rate of returns are
Select an option to see the answer and solution.
Q477
Open questionAn internal rate of return in capital budgeting can be modified to make it representative of
Select an option to see the answer and solution.
Q478
Open questionSituation in which firm limits expenditures on capital is classified as
Select an option to see the answer and solution.
Q479
Open questionInitial cost is Rs 5000 and probability index is 3.2 then present value of cash flows is
Select an option to see the answer and solution.
Q480
Open questionA project which have one series of cash inflows and results in one or more cash outflows is classified as
Select an option to see the answer and solution.