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Financial Management Practice Test 66

Present Value of Annuity MCQ Questions PDF - 66

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Financial Management MCQ: Present Value of Annuity Quiz PDF Download - 66

MCQ: In capital budgeting, a negative net present value results in

A) zero economic value added
B) percent economic value added
C) negative economic value added
D) positive economic value added

MCQ: According to probability distribution of rates of return, a close outcome to an expected value is shown by

A) value distribution
B) expected distribution
C) more peaked distribution
D) less peaked distribution

MCQ: The number of years forecasted to recover an original investment is classified as

A) payback period
B) forecasted period
C) original period
D) investment period

MCQ: In capital budgeting, the term of bond which has great sensitivity to interest rates is

A) long-term bonds
B) short-term bonds
C) internal term bonds
D) external term bonds

MCQ: An average inflation rate which is expected over the life of security is classified as

A) inflation premium
B) off season premium
C) nominal premium
D) required premium

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