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Financial Management Entrance Exam: Practice Test 6 (Chapter 2)
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The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be
The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be
The profitability index in capital budgeting is used for
Other factors held constant, the greater project liquidity is because of
In calculation of internal rate of return, an assumption states that received cash flow from the project must
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