Sail E0 Webinar

MCQs

Cash Flow Statement

Total Questions : 118 | Page 7 of 12 pages
Question 61. A point where the profile of net present value crosses the horizontal axis at the plotted graph indicates the project
  1.    costs
  2.    cash flows
  3.    internal rate of return
  4.    external rate of return
 Discuss Question
Answer: Option C. -> internal rate of return
Answer: (c).internal rate of return
Question 62. The modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is
  1.    positive
  2.    negative
  3.    zero
  4.    one
 Discuss Question
Answer: Option A. -> positive
Answer: (a).positive
Question 63. In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as
  1.    greater annual annuity method
  2.    equivalent annual annuity
  3.    lesser annual annuity method
  4.    zero annual annuity method
 Discuss Question
Answer: Option B. -> equivalent annual annuity
Answer: (b).equivalent annual annuity
Question 64. In capital budgeting, a negative net present value results in
  1.    zero economic value added
  2.    percent economic value added
  3.    negative economic value added
  4.    positive economic value added
 Discuss Question
Answer: Option C. -> negative economic value added
Answer: (c).negative economic value added
Question 65. The payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as
  1.    discounted payback period
  2.    discounted rate of return
  3.    discounted cash flows
  4.    discounted project cost
 Discuss Question
Answer: Option A. -> discounted payback period
Answer: (a).discounted payback period
Question 66. In capital budgeting, the number of non-normal cash flows having internal rate of returns are
  1.    one
  2.    multiple
  3.    accepted
  4.    non-accepted
 Discuss Question
Answer: Option B. -> multiple
Answer: (b).multiple
Question 67. An internal rate of return in capital budgeting can be modified to make it the representative of
  1.    relative outflow
  2.    relative inflow
  3.    relative cost
  4.    relative profitability
 Discuss Question
Answer: Option D. -> relative profitability
Answer: (d).relative profitability
Question 68. A project which have one series of cash inflows and results in one or more cash outflows is classified as
  1.    abnormal costs
  2.    normal cash flows
  3.    abnormal cash flow
  4.    normal costs
 Discuss Question
Answer: Option B. -> normal cash flows
Answer: (b).normal cash flows
Question 69. The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is
  1.    8200
  2.    16000
  3.    0.0064
  4.    1562.5
 Discuss Question
Answer: Option B. -> 16000
Answer: (b).16000
Question 70. The situation in which the firm limits the expenditures on capital is classified as
  1.    optimal rationing
  2.    capital rationing
  3.    marginal rationing
  4.    transaction rationing
 Discuss Question
Answer: Option B. -> capital rationing
Answer: (b).capital rationing

Latest Videos

Latest Test Papers