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Financial management Practice Questions & Answers

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

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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

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Initial cost is Rs 5000 and probability index is 3.2 then present value of cash flows is

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Initial cost is Rs 5000 and probability index is 3.2 then present value of cash flows is

A).  Rs 8,200.00

B).  Rs 16,000.00

C).  Rs 10,000.00

D).  Rs 1,562.50

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Situation in which firm limits expenditures on capital is classified as

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Situation in which firm limits expenditures on capital is classified as

A).  optimal rationing

B).  capital rationing

C).  marginal rationing

D).  transaction rationing

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An internal rate of return in capital budgeting can be modified to make it representative of

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An internal rate of return in capital budgeting can be modified to make it representative of

A).  relative outflow

B).  relative inflow

C).  relative cost

D).  relative profitability

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In capital budgeting, number of non-normal cash flows have internal rate of returns are

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In capital budgeting, number of non-normal cash flows have internal rate of returns are

A).  one

B).  multiple

C).  accepted

D).  non-accepted