Capital Budgeting and Inflation Quiz with Answers PDF Download – Test 61

MCQ 301: If the real rate is 16% and an inflation rate is 8%, then the nominal rate of return will be:

1. 27.28%
2. 25.28%
3. 22.28
4. 21.28

MCQ 302: The financial factors measured in numerical terms, having some monetary value are considered as:

1. qualitative factors
2. quantitative factors
3. expected factors
4. recorded factors

MCQ 303: An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate:

1. annual irrelevant ordering costs
2. annual relevant carrying costs
3. annual relevant ordering costs
4. annual irrelevant carrying costs

MCQ 304: A measure which evaluates overall tradeoff and effect among non-financial performance measure is:

1. non-financial measures
2. financial measures
3. effective measure
4. lump sum measure

MCQ 305: The method, which calculates the time to recoup initial investment of project in form of expected cash flows is known as:

1. net value cash flow method
2. payback method
3. single cash flow method
4. lean cash flow method