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Basics of Capital Budgeting Evaluating Cash Flows
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The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be ___________?
Related MCQs
The net present value, profitability index, payback and discounted payback are the methods to __________?
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In capital budgeting, the term of bond which has great sensitivity to interest rates is __________?
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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 ________?
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In capital budgeting, an internal rate of return of the project is classified as its __________?
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An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be ________?
The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be ___________?
A. 0.55
B. 1.82
C. 0.55
D. 0.0182
Correct Answer:
1.82
✔
Last Updated:
November 23, 2021