A. minimum life
B. present value life
C. economic life
D. transaction life
Correct Answer: economic life ✔
Last Updated: November 23, 2021
Related MCQs
- The net present value, profitability index, payback and discounted payback are the methods to __________?
- A type of project whose cash flows would not depend on each other is classified as __________?
- The project whose cash flows are less than the capital invested for required rate of return then the net present value will be __________?
- The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be __________?
- The cash inflows are the revenues of project and are represented by __________?
- In large expansion programs, the increased riskiness and the floatation cost associated with project can cause __________?
- An initial cost is $6000 and the probability index is 5.6 then the present value of cash flows will be __________?
- An increase in marginal cost of capital and the capital rationing are two arising complications of __________?
- In capital budgeting, a technique which is based upon discounted cash flow is classified as __________?
- In estimating value of cash flows, the compounded future value is classified as its _________?
- The cash flow which starts negative then positive then again positive cash flow is classified as __________?
- The cash outflows are the costs of project and are represented by _________?
- If two independent projects having hurdle rate then both projects should __________?
- The sum of discounted cash flows is best defined as __________?
- The situation in which one project is accepted while rejecting an other project in comparison is classified as __________?
- The first step in calculation of net present value is to find out ________?
- The cash flows occurring with more than one change in sign of cash flow are classified as __________?
- If the net present value is positive then the profitability index will be __________?
- The present value of future cash flows is divided by an initial cost of the project to calculate __________?
- A project which have one series of cash inflows and results in one or more cash outflows is classified as __________
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- The situation in which the firm limits the expenditures on capital is classified as __________?
- An internal rate of return in capital budgeting can be modified to make it the representative of __________?
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- In calculation of internal rate of return, an assumption states that received cash flow from the project must __________?
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- The profitability index in capital budgeting is used for __________?
- The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be __________?
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- The process in which the managers of the company identify projects to add value is classified as __________?
- In capital budgeting, the term of bond which has great sensitivity to interest rates is __________?
- The number of years forecasted to recover an original investment is classified as __________?
- In capital budgeting, a negative net present value results in _________?
- In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as __________?
- The payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as __________?
- The modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is __________?
- A point where the profile of net present value crosses the horizontal axis at the plotted graph indicates the project __________?
- The set of projects or set of investments to maximize the firm value is classified as __________?
- A modified internal rate of return is considered as present value of costs and is equal to ________?
- The graph which is plotted for projected net present value and capital rates is called __________?
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- In independent projects evaluation, the results of internal rate of return and net present value lead to __________?
- In capital budgeting, an internal rate of return of the project is classified as its __________?
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