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Finance MCQs

500 MCQs
241

A modified internal rate of return is considered as present value of costs and is equal to ________?

Ap.v of hurdle rate
Bfv of hurdle rate
Cp.v of terminal value
Dfv of terminal value
242

The graph which is plotted for projected net present value and capital rates is called ___________?

Anet loss profile
Bnet gain profile
Cnet future value profile
Dnet present value profile
243

The projects which are mutually exclusive but different on scale of production or time of completion than the _________?

Aexternal return method
Bnet present value of method
Cnet future value method
Dinternal return method
244

In internal rate of returns, the discount rate which forces the net present values to become zero is classified as ___________?

Apositive rate of return
Bnegative rate of return
Cexternal rate of return
Dinternal rate of return
245

In independent projects evaluation, the results of internal rate of return and net present value lead to __________?

Acash flow decision
Bcost decision
Csame decisions
Ddifferent decisions
246

In capital budgeting, an internal rate of return of the project is classified as its __________?

Aexternal rate of return
Binternal rate of return
Cpositive rate of return
Dnegative rate of return
247

Other factors held constant, but the lesser project liquidity is because of __________?

Ashorter payback period
Bgreater payback period
Cless project return
Dgreater project return
248

In cash flow analysis, the two projects are compared by using common life, is classified as _________?

Atransaction approach
Breplacement chain approach
Ccommon life approach
DBoth B and C
249

An uncovered cost at the start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating ____________?

Aoriginal period
Binvestment period
Cpayback period
Dforecasted period
250

The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be ___________?

A0.55
B1.82
C0.55
D0.0182
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