Finance MCQs

1052 MCQs  (Page 15 of 106)

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
In capital budgeting, a negative net present value results in _________?
A. Zero economic value added
B. Percent economic value added
C. Negative economic value added
D. Positive economic value added
In capital budgeting, the term of bond which has great sensitivity to interest rates is __________?
A. Long-term bonds
B. Short-term bonds
C. Internal term bonds
D. External term bonds
In cash flow analysis, the two projects are compared by using common life, is classified as _________?
A. Transaction approach
B. Replacement chain approach
C. Common life approach
D. Both b and c
Other factors held constant, but the lesser project liquidity is because of __________?
A. Shorter payback period
B. Greater payback period
C. Less project return
D. Greater project return
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
In internal rate of returns, the discount rate which forces the net present values to become zero is classified as ___________?
A. Positive rate of return
B. Negative rate of return
C. External rate of return
D. Internal rate of return
The projects which are mutually exclusive but different on scale of production or time of completion than the _________?
A. External return method
B. Net present value of method
C. Net future value method
D. Internal return method