Net Present Value Notes Questions with Answers PDF Download – Test 75

MCQ 371: The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be:

1. negative
2. zero
3. positive
4. independent

MCQ 372: The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be:

1. 0.55
2. 1.82
3. 0.55
4. 0.0182

MCQ 373: The stock selling price is $65, expected dividend is $20 and cost of common stock is 42% then expected growth rate will be:

1. 0.1123
2. 0.1123
3. 11.23
4. 11.23

MCQ 374: In retention growth model, the percent of net income firms usually pay out as shareholders dividends, is classified as:

1. payout ratio
2. payback ratio
3. growth retention ratio
4. present value of ratio

MCQ 375: The markets dealing the loans of autos, education, vacations and appliances are considered as:

1. consumer credit loans
2. commercial markets
3. residential markets
4. mortgage markets