Life that maximizes net present value of an asset is classified as__________?

Related Mcqs:

1. The life that maximizes net present value of an asset is classified as _________?

   A. minimum life
   B. present value life
   C. economic life
   D. transaction life

2. In internal rate of returns, discount rate which forces net present values to become zero is classified as__________?

   A. Positive rate of return
   B. Negative rate of return
   C. External rate of return
   D. Internal rate of return

3. Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as____________?

   A. Valued relationship
   B. Economic relationship
   C. Direct relationship
   D. Inverse relationship

4. A discount rate which is equal to the present value of TV to the project cost present value is classified as _________?

   A. negative internal rate of return
   B. modified internal rate of return
   C. existed internal rate of return
   D. relative rate of return

5. The relationship between Economic Value Added (EVA) and the Net Present Value (NPV) is considered as _________?

   A. valued relationship
   B. economic relationship
   C. direct relationship
   D. inverse relationship

6. An average inflation rate which is expected over life of security is classified as__________?

   A. Inflation premium
   B. Off season premium
   C. Nominal premium
   D. Required premium

7. A project whose cash flows are more than capital invested for rate of return then net present value will be___________?

   A. Positive
   B. Independent
   C. Negative
   D. Zero

8. In capital budgeting, positive net present value results in_________________?

   A. Negative economic value added
   B. Positive economic value added
   C. Zero economic value added
   D. Percent economic value added

9. First step in calculation of net present value is to find out_________?

   A. Present value of equity
   B. Future value of equity
   C. Present value cash flow
   D. Future value of cash flow

10. Net present value, profitability index, payback and discounted payback are methods to______________?

    A. Evaluate cash flow
    B. Evaluate projects
    C. Evaluate budgeting
    D. Evaluate equity