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Total Questions : 163 | Page 16 of 17 pages
Question 151. If the net initial investment is $6850000 and the uniform increases yearly cash flows is $2050000, then payback period will be
  1.    3.34 years
  2.    4.34 years
  3.    5.34 years
  4.    6.34 years
 Discuss Question
Answer: Option A. -> 3.34 years
Answer: (a).3.34 years
Question 152. A concept which explains a received money in present time, is more valuable than money received in future is called
  1.    lead value of money
  2.    storage value of money
  3.    time value of money
  4.    cash value of money
 Discuss Question
Answer: Option C. -> time value of money
Answer: (c).time value of money
Question 153. The net initial investment is divided by uniform increasing in future cash flows to calculate
  1.    discounting period
  2.    investment period
  3.    payback period
  4.    earning period
 Discuss Question
Answer: Option C. -> payback period
Answer: (c).payback period
Question 154. If the payback period is 4 years and the uniform increases in cash flows per year is $2750000, then the net initial investment can be
  1.    $10,511,000
  2.    $12,105,000
  3.    $1,100,000
  4.    $11,000,000
 Discuss Question
Answer: Option D. -> $11,000,000
Answer: (d).$11,000,000
Question 155. The vertically upward dimension of cost analysis is also called
  1.    project dimension
  2.    accounting-period dimension
  3.    back-flush accounting dimension
  4.    lean accounting dimension
 Discuss Question
Answer: Option B. -> accounting-period dimension
Answer: (b).accounting-period dimension
Question 156. If the real rate is 16% and an inflation rate is 8%, then the nominal rate of return will be
  1.    27.28%
  2.    25.28%
  3.    22.28
  4.    21.28
 Discuss Question
Answer: Option B. -> 25.28%
Answer: (b).25.28%
Question 157. The method, which calculates the time to recoup initial investment of project in form of expected cash flows is known as
  1.    net value cash flow method
  2.    payback method
  3.    single cash flow method
  4.    lean cash flow method
 Discuss Question
Answer: Option B. -> payback method
Answer: (b).payback method
Question 158. The rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as
  1.    nominal rate of return
  2.    accrual accounting rate of return
  3.    real rate of return
  4.    required rate of return
 Discuss Question
Answer: Option A. -> nominal rate of return
Answer: (a).nominal rate of return
Question 159. According to net present value, the projects that would be acceptable must have a
  1.    negative net present value
  2.    zero net present value
  3.    positive net present value
  4.    both b and c
 Discuss Question
Answer: Option D. -> both b and c
Answer: (d).both b and c
Question 160. If tax operating income is $885000 per year and the net initial investment is $35750000 then increase in average is
  1.    0.475% per year
  2.    4.475% per year
  3.    3.475% per year
  4.    2.475% per year
 Discuss Question
Answer: Option D. -> 2.475% per year
Answer: (d).2.475% per year

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