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Financial Management Cerification Guide: Practice Test 11 (Chapter 2)

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The Quiz: In large expansion programs, the increased riskiness and the floatation cost associated with project can cause; "Basics of Capital Budgeting Evaluating Cash Flows Quiz" App (iOS, Android) with answers: fall in marginal cost of capital, rise in marginal cost of capital, rise in transaction cost of capital, and rise in transaction cost of capital for bachelors degree online. Study Theory of Risk & Return Quiz Questions, download Google Book (Free Sample) for accredited online business administration degree.

Basics of Capital Budgeting Evaluating Cash Flows Exam Questions and Answers PDF Download: Test 11

MCQ: 51

In large expansion programs, the increased riskiness and the floatation cost associated with project can cause

  1. rise in marginal cost of capital
  2. fall in marginal cost of capital
  3. rise in transaction cost of capital
  4. rise in transaction cost of capital
MCQ: 52

The cash inflows are the revenues of project and are represented by

  1. hurdle number
  2. relative number
  3. negative numbers
  4. positive numbers
MCQ: 53

The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be

  1. 0.0319
  2. 3.19
  3. 0.31
  4. 5450
MCQ: 54

The project whose cash flows are less than the capital invested for required rate of return then the net present value will be

  1. negative
  2. zero
  3. positive
  4. independent
MCQ: 55

A type of project whose cash flows would not depend on each other is classified as

  1. project net gain
  2. independent projects
  3. dependent projects
  4. net value projects

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Basics of Capital Budgeting Evaluating Cash Flows Quiz App (Android & iOS)

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