💰Finance MCQs
Finance MCQs
500 MCQs281
If the net present value is positive then the profitability index will be ___________?
Agreater than two
Bequal to
Cless than one
Dgreater than one
282
The present value of future cash flows is divided by an initial cost of the project to calculate __________?
Anegative index
Bexchange index
Cproject index
Dprofitability index
283
A project which have one series of cash inflows and results in one or more cash outflows is classified as __________
Aabnormal costs
Bnormal cash flows
Cabnormal cash flow
Dnormal costs
284
The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is _________?
A8200
B16000
C0.0064
D1562.5
285
The situation in which the firm limits the expenditures on capital is classified as __________?
Aoptimal rationing
Bcapital rationing
Cmarginal rationing
Dtransaction rationing
286
An internal rate of return in capital budgeting can be modified to make it the representative of __________?
Arelative outflow
Brelative inflow
Crelative cost
Drelative profitability
287
In capital budgeting, the number of non-normal cash flows having internal rate of returns are _________?
Aone
Bmultiple
Caccepted
Dnon-accepted
288
In calculation of internal rate of return, an assumption states that received cash flow from the project must __________?
Abe reinvested
Bnot be reinvested
Cbe earned
Dnot be earned
289
Other factors held constant, the greater project liquidity is because of ___________?
Aless project return
Bgreater project return
Cshorter payback period
Dgreater payback period
290
The profitability index in capital budgeting is used for __________?
Anegative projects
Brelative projects
Cevaluate projects
Dearned projects