Related Mcqs:

1. The net initial investment is divided by uniform increasing in future cash flows to calculate __________?

   A. discounting period
   B. investment period
   C. payback period
   D. earning period

2. If the net initial investment is $6850000 and the uniform increases yearly cash flows is $2050000, then payback period will be _____________?

   A. 3.34 years
   B. 4.34 years
   C. 5.34 years
   D. 6.34 years

3. 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 _____________?

   A. $10,511,000
   B. $12,105,000
   C. $1,100,000
   D. $11,000,000

4. The sum of returned working capital and net initial investment is divided by 2 to calculate ____________?

   A. increase in operating income
   B. average investment over five years
   C. average capital invested
   D. average rate of return

5. The method, which calculates the time to recoup initial investment of project in form of expected cash flows is known as __________?

   A. net value cash flow method
   B. payback method
   C. single cash flow method
   D. lean cash flow method

6. If an initial investment is $765000, the payback period is 4.5 years, then increase in future cash flow will be __________?

   A. $5,645,000
   B. $6,442,500
   C. $3,442,500
   D. $5,442,500

7. The payback period is multiplied for constant increase in yearly future cash flows to calculate __________?

   A. cash value of money
   B. net initial investment
   C. net future value
   D. time value of money

8. If the net initial investment is $985000, returned working capital is $7500, then an average investment over five years will be ___________?

   A. $596,300
   B. $485,300
   C. $496,250
   D. $486,250

9. If tax operating income is $885000 per year and the net initial investment is $35750000 then increase in average is __________?

   A. 0.475% per year
   B. 4.475% per year
   C. 3.475% per year
   D. 2.475% per year

10. The cash flows method, used by net present value method and internal rate of return are ___________?

    A. vertical cash flows
    B. discounted cash flows
    C. lean cash flows
    D. future cash flows