A. Evaluate cash flow
B. Evaluate projects
C. Evaluate budgeting
D. Evaluate equity
Related Mcqs:
- The net present value, profitability index, payback and discounted payback are the methods to __________?
A. evaluate cash flow
B. evaluate projects
C. evaluate budgeting
D. evaluate equity - If net present value is positive, then profitability index will be__________?
A. Greater than two
B. Equal to
C. Less than one
D. Greater than one - If the net present value is positive then the profitability index will be ___________?
A. greater than two
B. equal to
C. less than one
D. greater than one - The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be ___________?
A. 0.55
B. 1.82
C. 0.55
D. 0.0182 - The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be ____________?
A. 0.0319
B. 3.19
C. 0.31 times
D. 5450 - Payback period in which an expected cash flows are discounted with help of project cost of capital is classified as___________________?
A. Discounted payback period
B. Discounted rate of return
C. Discounted cash flows
D. Discounted project cost - The payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as __________?
A. discounted payback period
B. discounted rate of return
C. discounted cash flows
D. discounted project cost - Profitability index (PI) rule is to take an investment, if the index exceeds___________?
A. -1
B. 0
C. 1
D. 2 - 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 - Profitability index in capital budgeting is used for_________?
A. Negative projects
B. Relative projects
C. Evaluate projects
D. Earned projects
