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Estimating Cash Flow and Analyzing Risk
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Estimating Cash Flow and Analyzing Risk
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Estimating Cash Flow and Analyzing Risk
The project which is started by the firm for increasing the sales is classified as
new expansion project
old expanded project
firm borrowing project
product line selection
Author:
rikazzz
Comment
Estimating Cash Flow and Analyzing Risk
In the cash flow estimation and risk analysis, the real rate will be equal to nominal rate if there is
no inflation
high inflation
no transactions
no acceleration
Author:
rikazzz
Comment
Estimating Cash Flow and Analyzing Risk
The real interest rate and the real cash flows do not include
equity effects
debt effects
inflation effects
opportunity effects
Author:
rikazzz
Comment
Estimating Cash Flow and Analyzing Risk
The situation in which the new business reduces an existing business of the firm is classified as
non-cannibalization effect
cannibalization effect
external effect
internal effect
Author:
rikazzz
Comment
Estimating Cash Flow and Analyzing Risk
The gross fixed asset expenditures is $6000 and the free cash flow is $8000 then the operating cash flows will be
−$14000
2000
14000
−$2000
Author:
rikazzz
Comment
Estimating Cash Flow and Analyzing Risk
The weighted average cost of debt, preferred stock and common equity is classified as
cost of salvage
cost of interest
cost of taxation
cost of capital
Author:
rikazzz
Comment
Estimating Cash Flow and Analyzing Risk
In capital budgeting, the cost of capital is used as discount rate and is based on pre-determines
cost of inflation
cost of debt and equity
cost of opportunity
cost of transaction
Author:
rikazzz
Comment
Estimating Cash Flow and Analyzing Risk
The free cash flow is $12000, an operating cash flow is $4000, an investment outlay cash flow is $5000 then the salvage cash flow would be
−$21000
21000
−$3000
3000
Author:
rikazzz
Comment
Estimating Cash Flow and Analyzing Risk
The nominal interest rates and the nominal cash flows are usually reflected the
inflation effects
opportunity effects
equity effects
debt effects
Author:
rikazzz
Comment
Estimating Cash Flow and Analyzing Risk
The rate of return which is required to satisfy stockholders and debt holders is classified as
weighted average cost of interest
weighted average cost of capital
weighted average salvage value
mean cost of capital
Author:
rikazzz
Comment
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