A. be reinvested
B. not be reinvested
C. be earned
D. not be earned
Related Mcqs:
- The modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is ____________?
A. positive
B. negative
C. zero
D. one - Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is____________?
A. Positive
B. Negative
C. Zero
D. One - In capital budgeting, an internal rate of return of the project is classified as its __________?
A. external rate of return
B. internal rate of return
C. positive rate of return
D. negative rate of return - The marginal income tax rate is 35% and before tax rate of return is 12.5% then the after tax rate of return is __________?
A. 0.0613
B. 0.0713
C. 0.08125
D. 0.0913 - The marginal income tax rate is 28% and before tax rate of return is 14.5% then the after tax rate of return is __________?
A. 0.0744
B. 0.0844
C. 0.0944
D. 0.1044 - Real rate expected cash flows and nominal rate expected cash flows must be______________?
A. Accelerated
B. Equal
C. Different
D. Inflated - In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as __________?
A. greater annual annuity method
B. equivalent annual annuity
C. lesser annual annuity method
D. zero annual annuity method - The bonds that are backed by cash flow from project and are sold to finance particular project are classified as ____________?
A. finance bonds
B. revenue bonds
C. financing bonds
D. project bonds - A project whose cash flows are more than the capital invested for rate of return then the net present value will be _________?
A. positive
B. independent
C. negative
D. zero - The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be ____________?
A. negative
B. zero
C. positive
D. independent
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