The situation in which one project is accepted while rejecting an other project in comparison is classified as __________?

Related Mcqs:

1. In mutually exclusive projects, project which is selected for comparison with others must have____________?

   A. Higher net present value
   B. Lower net present value
   C. Zero net present value
   D. All of above

2. In the mutually exclusive projects, the project which is selected for comparison with others must have _________?

   A. higher net present value
   B. lower net present value
   C. zero net present value
   D. all of the above

3. 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

4. The situation in which the firm limits the expenditures on capital is classified as __________?

   A. optimal rationing
   B. capital rationing
   C. marginal rationing
   D. transaction rationing

5. Corporations that buy financial instruments with money accepted from savers are classified as_________________?

   A. Debit funds
   B. Credit funds
   C. Mutual funds
   D. Insurance funds

6. 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

7. 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

8. A project which have one series of cash inflows and results in one or more cash outflows is classified as __________

   A. abnormal costs
   B. normal cash flows
   C. abnormal cash flow
   D. normal costs

9. The price accepted in single bid auction system is the one which is the __________?

   A. most lowest
   B. most highest
   C. least lowest
   D. least highest

10. A discount rate which is equal to the present value of TV to the project cost present value is classified as _________?

    A. negative internal rate of return
    B. modified internal rate of return
    C. existed internal rate of return
    D. relative rate of return