Finance MCQs

1052 MCQs  (Page 48 of 106)

In capital budgeting, a negative net present value result in______________?
A. Zero economic value added
B. Percent economic value added
C. Negative economic value added
D. Positive economic value added
Process in which managers of company identify projects to add value is classified as__________?
A. Capital budgeting
B. Cost budgeting
C. Book value budgeting
D. Equity budgeting
Other factors held constant, greater project liquidity is because of___________?
A. Less project returns
B. Greater project return
C. Shorter payback period
D. Greater payback period
Situation in which firm limits expenditures on capital is classified as________?
A. Optimal rationing
B. Capital rationing
C. Marginal rationing
D. Transaction rationing
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
Cash outflows are costs of project and are represented by___________?
A. Negative numbers
B. Positive numbers
C. Hurdle number
D. Relative number