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Financial Management MCQs - Chapter 2

Basics of Capital Budgeting Evaluating Cash Flows Quiz Questions & Answers PDF Download - 7

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Basics of Capital Budgeting Evaluating Cash Flows Exam Questions and Answers PDF Download: Test 7

MCQ: 31

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

  1. one
  2. multiple
  3. accepted
  4. non-accepted
MCQ: 32

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

  1. relative outflow
  2. relative inflow
  3. relative cost
  4. relative profitability
MCQ: 33

The situation in which the firm limits the expenditures on capital is classified as

  1. optimal rationing
  2. capital rationing
  3. marginal rationing
  4. transaction rationing
MCQ: 34

The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is

  1. 8200
  2. 16000
  3. 0.0064
  4. 1562.5
MCQ: 35

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

  1. abnormal costs
  2. normal cash flows
  3. abnormal cash flow
  4. normal costs

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