A. transaction approach
B. replacement chain approach
C. common life approach
D. Both B and C
Related Mcqs:
- Cash flow which starts negative than positive then again positive cash flow is classified as__________?
A. Normal costs
B. Non-normal costs
C. Non-normal cash flow
D. Normal cash flow - 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 cash flow which starts negative then positive then again positive cash flow is classified as ___________?
A. normal costs
B. non-normal costs
C. non-normal cash flow
D. normal cash flow - The price per share is $25 and the cash flow per share is $6 then the price to cash flow ratio would be ___________?
A. 0.24 times
B. 4.16 times
C. 0.0416
D. 0.24 - The cash flows occurring with more than one change in sign of cash flow are classified as __________?
A. non-normal cash flow
B. normal cash flow
C. normal costs
D. non-normal costs - If two independent projects having hurdle rate, then both projects should________?
A. Be accepted
B. Not be accepted
C. Have capital acceptance
D. Have return rate acceptance - If two independent projects having hurdle rate then both projects should ___________?
A. be accepted
B. not be accepted
C. have capital acceptance
D. have return rate acceptance - Cash flows occurring with more than one change in sign of cash flow are classified as________?
A. Non-normal cash flow
B. Normal cash flow
C. Normal costs
D. Non-normal costs - Net income is $2250 and non cash charges are $1150 then net cash flow would be _________?
A. $1,100
B. $3,400
C. $2,200
D. $3,500 - In cash flow estimation and risk analysis, real rate will be equal to nominal rate if there is__________?
A. No inflation
B. High inflation
C. No transactions
D. No acceleration
