Skip to content
MCQtimes.com
GK
Pakistan Studies
Current Affairs
Islamic Studies
English
MCQtimes.com
Toggle Menu
Fundamentals of Capital Budgeting
Home
/
Finance
/
Financial Management
/
Fundamentals of Capital Budgeting
Show/Hide Answers
Fundamentals of Capital Budgeting
A type of project whose cash flows would not depend on each other is classified as
project net gain
independent projects
dependent projects
net value projects
Author:
rikazzz
Comment
Fundamentals of Capital Budgeting
In internal rate of returns, the discount rate which forces the net present values to become zero is classified as
positive rate of return
negative rate of return
external rate of return
internal rate of return
Author:
rikazzz
Comment
Fundamentals of Capital Budgeting
Other factors held constant, the greater project liquidity is because of
less project return
greater project return
shorter payback period
greater payback period
Author:
rikazzz
Comment
Fundamentals of Capital Budgeting
In capital budgeting, an internal rate of return of the project is classified as its
external rate of return
internal rate of return
positive rate of return
negative rate of return
Author:
rikazzz
Comment
Fundamentals of Capital Budgeting
An initial cost is $6000 and the probability index is 5.6 then the present value of cash flows will be
25000
28000
33600
30000
Author:
rikazzz
Comment
Fundamentals of Capital Budgeting
The net present value, profitability index, payback and discounted payback are the methods to
evaluate cash flow
evaluate projects
evaluate budgeting
evaluate equity
Author:
rikazzz
Comment
Fundamentals of Capital Budgeting
If the net present value is positive then the profitability index will be
greater than two
equal to
less than one
greater than one
Author:
rikazzz
Comment
Fundamentals of Capital Budgeting
The modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is
positive
negative
zero
one
Author:
rikazzz
Comment
Fundamentals of Capital Budgeting
In calculation of internal rate of return, an assumption states that received cash flow from the project must
be reinvested
not be reinvested
be earned
not be earned
Author:
rikazzz
Comment
Fundamentals of Capital Budgeting
A project which have one series of cash inflows and results in one or more cash outflows is classified as
abnormal costs
normal cash flows
abnormal cash flow
normal costs
Author:
rikazzz
Comment
Page navigation
1
2
3
…
6
Next Page
Next
Go to Page
Light
Dark
GK
Pakistan Studies
Current Affairs
Islamic Studies
English