Profitability index in capital budgeting is used for_________?

Related Mcqs:

1. The profitability index in capital budgeting is used for __________?

   A. negative projects B. relative projects C. evaluate projects D. earned projects...

2. Profitability index (PI) rule is to take an investment, if the index exceeds___________?

   A. -1 B. 0 C. 1 D. 2...

3. In capital budgeting, two projects having cost of capital as 12% is classified as __________?

   A. hurdle rate B. capital rate C. return rate D. budgeting rate...

4. Net present value, profitability index, payback and discounted payback are methods to______________?

   A. Evaluate cash flow B. Evaluate projects C. Evaluate budgeting D. Evaluate equity...

5. 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...

6. 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...

7. 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...

8. 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...

9. 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...

10. In capital budgeting, positive net present value results in_________________?

    A. Negative economic value added B. Positive economic value added C. Zero economic value added D. Percent economic value added...