Finance MCQs

1052 MCQs  (Page 22 of 106)

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
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
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
Profitability index in capital budgeting is used for_________?
A. Negative projects
B. Relative projects
C. Evaluate projects
D. Earned projects
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
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
Bonds that have high liquidity premium are usually have_________?
A. Inflated trading
B. Default free trading
C. Less frequently traded
D. Frequently traded