Finance MCQs

1052 MCQs  (Page 12 of 106)

In capital budgeting, a technique which is based upon discounted cash flow is classified as ___________?
A. Net present value method
B. Net future value method
C. Net capital budgeting method
D. Net equity budgeting method
An increase in marginal cost of capital and the capital rationing are two arising complications of __________?
A. Maximum capital budget
B. Greater capital budget
C. Optimal capital budget
D. Minimum capital budget
In large expansion programs, the increased riskiness and the floatation cost associated with project can cause ___________?
A. Rise in marginal cost of capital
B. Fall in marginal cost of capital
C. Rise in transaction cost of capital
D. Rise in transaction cost of capital
The first step in calculation of net present value is to find out ________?
A. Present value of equity
B. Future value of equity
C. Present value cash flow
D. Future value of cash flow
The sum of discounted cash flows is best defined as ___________?
A. Technical equity
B. Defined future value
C. Project net present value
D. Equity net present value
The life that maximizes net present value of an asset is classified as _________?
A. Minimum life
B. Present value life
C. Economic life
D. Transaction life