**Option A:** evaluate cash flow

**Option B:** evaluate projects

**Option C:** evaluate budgeting

**Option D:** evaluate equity

**Correct Answer: **evaluate projects ✔

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**Option A:** project net gain

**Option B:** independent projects

**Option C:** dependent projects

**Option D:** net value projects

**Correct Answer: **independent projects ✔

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**Option A:** negative

**Option B:** zero

**Option C:** positive

**Option D:** independent

**Correct Answer: **negative ✔

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**Option A:** 0.0319

**Option B:** 3.19

**Option C:** 0.31 times

**Option D:** 5450

**Correct Answer: **0.0319 ✔

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**Option A:** hurdle number

**Option B:** relative number

**Option C:** negative numbers

**Option D:** positive numbers

**Correct Answer: **positive numbers ✔

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**Option A:** rise in marginal cost of capital

**Option B:** fall in marginal cost of capital

**Option C:** rise in transaction cost of capital

**Option D:** rise in transaction cost of capital

**Correct Answer: **rise in marginal cost of capital ✔

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**Option A:** 25000

**Option B:** 28000

**Option C:** 33600

**Option D:** 30000

**Correct Answer: **33600 ✔

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**Option A:** maximum capital budget

**Option B:** greater capital budget

**Option C:** optimal capital budget

**Option D:** minimum capital budget

**Correct Answer: **optimal capital budget ✔

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**Option A:** net present value method

**Option B:** net future value method

**Option C:** net capital budgeting method

**Option D:** net equity budgeting method

**Correct Answer: **net present value method ✔

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**Option A:** terminal value

**Option B:** existed value

**Option C:** quit value

**Option D:** relative value

**Correct Answer: **terminal value ✔

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**Option A:** normal costs

**Option B:** non-normal costs

**Option C:** non-normal cash flow

**Option D:** normal cash flow

**Correct Answer: **non-normal cash flow ✔

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**Option A:** negative numbers

**Option B:** positive numbers

**Option C:** hurdle number

**Option D:** relative number

**Correct Answer: **negative numbers ✔

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**Option A:** be accepted

**Option B:** not be accepted

**Option C:** have capital acceptance

**Option D:** have return rate acceptance

**Correct Answer: **be accepted ✔

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**Option A:** minimum life

**Option B:** present value life

**Option C:** economic life

**Option D:** transaction life

**Correct Answer: **economic life ✔

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**Option A:** technical equity

**Option B:** defined future value

**Option C:** project net present value

**Option D:** equity net present value

**Correct Answer: **project net present value ✔

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**Option A:** present value consent

**Option B:** mutually exclusive

**Option C:** mutual project

**Option D:** mutual consent

**Correct Answer: **mutually exclusive ✔

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**Option A:** present value of equity

**Option B:** future value of equity

**Option C:** present value cash flow

**Option D:** future value of cash flow

**Correct Answer: **present value cash flow ✔

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**Option A:** non-normal cash flow

**Option B:** normal cash flow

**Option C:** normal costs

**Option D:** non-normal costs

**Correct Answer: **non-normal cash flow ✔

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**Option A:** greater than two

**Option B:** equal to

**Option C:** less than one

**Option D:** greater than one

**Correct Answer: **greater than one ✔

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**Option A:** negative index

**Option B:** exchange index

**Option C:** project index

**Option D:** profitability index

**Correct Answer: **profitability index ✔

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**Option A:** abnormal costs

**Option B:** normal cash flows

**Option C:** abnormal cash flow

**Option D:** normal costs

**Correct Answer: **normal cash flows ✔

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**Option A:** 8200

**Option B:** 16000

**Option C:** 0.0064

**Option D:** 1562.5

**Correct Answer: **16000 ✔

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**Option A:** optimal rationing

**Option B:** capital rationing

**Option C:** marginal rationing

**Option D:** transaction rationing

**Correct Answer: **capital rationing ✔

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**Option A:** relative outflow

**Option B:** relative inflow

**Option C:** relative cost

**Option D:** relative profitability

**Correct Answer: ** ✔

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**Option A:** one

**Option B:** multiple

**Option C:** accepted

**Option D:** non-accepted

**Correct Answer: **multiple ✔

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**Option A:** be reinvested

**Option B:** not be reinvested

**Option C:** be earned

**Option D:** not be earned

**Correct Answer: **be reinvested ✔

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**Option A:** less project return

**Option B:** greater project return

**Option C:** shorter payback period

**Option D:** greater payback period

**Correct Answer: **shorter payback period ✔

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**Option A:** negative projects

**Option B:** relative projects

**Option C:** evaluate projects

**Option D:** earned projects

**Correct Answer: **evaluate projects ✔

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**Option A:** 0.55

**Option B:** 1.82

**Option C:** 0.55

**Option D:** 0.0182

**Correct Answer: **1.82 ✔

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**Option A:** negative

**Option B:** zero

**Option C:** positive

**Option D:** independent

**Correct Answer: **zero ✔

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**Option A:** 3.46 years

**Option B:** 2.46 years

**Option C:** 5.46 years

**Option D:** 4.46 years

**Correct Answer: **4.46 years ✔

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**Option A:** negative internal rate of return

**Option B:** modified internal rate of return

**Option C:** existed internal rate of return

**Option D:** relative rate of return

**Correct Answer: **modified internal rate of return ✔

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**Option A:** capital budgeting

**Option B:** cost budgeting

**Option C:** book value budgeting

**Option D:** equity budgeting

**Correct Answer: **capital budgeting ✔

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## In capital budgeting, the term of bond which has great sensitivity to interest rates is __________?

**Option A:** long-term bonds

**Option B:** short-term bonds

**Option C:** internal term bonds

**Option D:** external term bonds

**Correct Answer: **long-term bonds ✔

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**Option A:** payback period

**Option B:** forecasted period

**Option C:** original period

**Option D:** investment period

**Correct Answer: **payback period ✔

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**Option A:** zero economic value added

**Option B:** percent economic value added

**Option C:** negative economic value added

**Option D:** positive economic value added

**Correct Answer: **negative economic value added ✔

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**Option A:** greater annual annuity method

**Option B:** equivalent annual annuity

**Option C:** lesser annual annuity method

**Option D:** zero annual annuity method

**Correct Answer: **equivalent annual annuity ✔

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**Option A:** discounted payback period

**Option B:** discounted rate of return

**Option C:** discounted cash flows

**Option D:** discounted project cost

**Correct Answer: **discounted payback period ✔

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**Option A:** positive

**Option B:** negative

**Option C:** zero

**Option D:** one

**Correct Answer: **positive ✔

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**Option A:** costs

**Option B:** cash flows

**Option C:** internal rate of return

**Option D:** external rate of return

**Correct Answer: **internal rate of return ✔

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## The set of projects or set of investments to maximize the firm value is classified as __________?

**Option A:** optimal capital budget

**Option B:** minimum capital budget

**Option C:** maximum capital budget

**Option D:** greater capital budget

**Correct Answer: **optimal capital budget ✔

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## A modified internal rate of return is considered as present value of costs and is equal to ________?

**Option A:** p.v of hurdle rate

**Option B:** fv of hurdle rate

**Option C:** p.v of terminal value

**Option D:** fv of terminal value

**Correct Answer: ** ✔

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## The graph which is plotted for projected net present value and capital rates is called __________?

**Option A:** net loss profile

**Option B:** net gain profile

**Option C:** net future value profile

**Option D:** net present value profile

**Correct Answer: **net present value profile ✔

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**Option A:** external return method

**Option B:** net present value of method

**Option C:** net future value method

**Option D:** internal return method

**Correct Answer: **net present value of method ✔

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**Option A:** positive rate of return

**Option B:** negative rate of return

**Option C:** external rate of return

**Option D:** internal rate of return

**Correct Answer: **internal rate of return ✔

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**Option A:** cash flow decision

**Option B:** cost decision

**Option C:** same decisions

**Option D:** different decisions

**Correct Answer: **same decisions ✔

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**Option A:** external rate of return

**Option B:** internal rate of return

**Option C:** positive rate of return

**Option D:** negative rate of return

**Correct Answer: **internal rate of return ✔

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**Option A:** shorter payback period

**Option B:** greater payback period

**Option C:** less project return

**Option D:** greater project return

**Correct Answer: **greater payback period ✔

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**Option A:** transaction approach

**Option B:** replacement chain approach

**Option C:** common life approach

**Option D:** Both B and C

**Correct Answer: **Both B and C ✔

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**Option A:** original period

**Option B:** investment period

**Option C:** payback period

**Option D:** forecasted period

**Correct Answer: **payback period ✔

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**Option A:** negative economic value added

**Option B:** positive economic value added

**Option C:** zero economic value added

**Option D:** percent economic value added

**Correct Answer: **positive economic value added ✔

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**Option A:** 5 years

**Option B:** 3.5 years

**Option C:** 4 years

**Option D:** 4.5 years

**Correct Answer: **5 years ✔

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**Option A:** valued relationship

**Option B:** economic relationship

**Option C:** direct relationship

**Option D:** inverse relationship

**Correct Answer: **direct relationship ✔

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**Option A:** higher net present value

**Option B:** lower net present value

**Option C:** zero net present value

**Option D:** all of the above

**Correct Answer: **higher net present value ✔

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**Option A:** positive

**Option B:** independent

**Option C:** negative

**Option D:** zero

**Correct Answer: **positive ✔

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**Option A:** Project net gain

**Option B:** Independent projects

**Option C:** Dependent projects

**Option D:** Net value projects

**Correct Answer: **Independent projects ✔

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**Option A:** Evaluate cash flow

**Option B:** Evaluate projects

**Option C:** Evaluate budgeting

**Option D:** Evaluate equity

**Correct Answer: **Evaluate projects ✔

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**Option A:** Hurdle number

**Option B:** Relative number

**Option C:** Negative numbers

**Option D:** Positive numbers

**Correct Answer: **Positive numbers ✔

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**Option A:** Normal costs

**Option B:** Non-normal costs

**Option C:** Non-normal cash flow

**Option D:** Normal cash flow

**Correct Answer: **Non-normal cash flow ✔

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**Option A:** Be accepted

**Option B:** Not be accepted

**Option C:** Have capital acceptance

**Option D:** Have return rate acceptance

**Correct Answer: **Be accepted ✔

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**Option A:** Terminal value

**Option B:** Existed value

**Option C:** Quit value

**Option D:** Relative value

**Correct Answer: **Terminal value ✔

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**Option A:** Negative economic value added

**Option B:** Positive economic value added

**Option C:** Zero economic value added

**Option D:** Percent economic value added

**Correct Answer: **Positive economic value added ✔

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**Option A:** Minimum life

**Option B:** Present value life

**Option C:** Economic life

**Option D:** Transaction life

**Correct Answer: **Economic life ✔

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**Option A:** Present value of equity

**Option B:** Future value of equity

**Option C:** Present value cash flow

**Option D:** Future value of cash flow

**Correct Answer: **Present value cash flow ✔

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**Option A:** Negative index

**Option B:** Exchange index

**Option C:** Project index

**Option D:** Profitability index

**Correct Answer: **Profitability index ✔

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**Option A:** 5 years

**Option B:** 3.5 years

**Option C:** 4 years

**Option D:** 4.5 years

**Correct Answer: **5 years ✔

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**Option A:** Valued relationship

**Option B:** Economic relationship

**Option C:** Direct relationship

**Option D:** Inverse relationship

**Correct Answer: **Direct relationship ✔

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**Option A:** Negative projects

**Option B:** Relative projects

**Option C:** Evaluate projects

**Option D:** Earned projects

**Correct Answer: **Evaluate projects ✔

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**Option A:** Higher net present value

**Option B:** Lower net present value

**Option C:** Zero net present value

**Option D:** All of above

**Correct Answer: **Higher net present value ✔

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**Option A:** Positive

**Option B:** Independent

**Option C:** Negative

**Option D:** Zero

**Correct Answer: **Positive ✔

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