The project’s expected monetary loss or gain by discounting all cash outflows and inflows, using required rate of return is classified as _________?

Related Mcqs:

1. The working capital cash outflow, cash outflow to buy machine and cash inflow from machine are the examples of ____________?

   A. cash flow from operations
   B. terminal disposal of investment
   C. net initial investment
   D. average return on investment

2. In monetary terms, an expected value of the outcome is classified as __________?

   A. expected value
   B. expected decision value
   C. expected outcome value
   D. expected monetary value

3. The rate of required return to cover the risk of investment, in absence of inflation is classified as ____________?

   A. real rate of return
   B. required rate of return
   C. nominal rate of return
   D. none of above

4. If the real rate is 16% and an inflation rate is 8%, then the nominal rate of return will be __________?

   A. 27.28%
   B. 25.28%
   C. 22.28
   D. 21.28

5. 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

6. An accounting approach, in which the expected benefits exceed the expected cost is classified as ___________?

   A. benefit approach
   B. cost approach
   C. cost-benefit approach
   D. accounting approach

7. If the required rate of return is 12% and the per unit cost of units purchased is $35, then the relevant opportunity cost of capital will be ____________?

   A. $6.20
   B. $7.20
   C. $4.20
   D. $5.20

8. The required rate of return, is multiplied per unit cost of purchased units to calculate __________?

   A. irrelevant inventory carrying costs
   B. relevant opportunity cost of capital
   C. relevant purchase order costs
   D. relevant inventory carrying costs

9. An investment is multiplied to required rate of return, to calculate: _____________?

   A. congruent cost of investment
   B. transfer cost of investment
   C. operating cost of investment
   D. imputed cost of investment

10. If the required rate of return is 13%, operating income is $375000 and the total investment is $2650000, then the residual income would be ____________?

    A. $30,500
    B. $20,500
    C. $25,500
    D. $32,500