Author: Faraz Ahmed – Page 94

✅ D. Both A and B

Option A : Going rate of return Option B : Yield Option C : Earning rate Option D : Both A and B Option E : Correct Answer : Both A and B Read more

✅ D. Equal to expected return rate

Option A : Mature expected return rate Option B : Lower than expected return rate Option C : Higher than expected return rate Option D : Equal to expected return rate Option E : Correct Answer : Equal to expected return rate Read more

✅ C. Opportunity costs

Option A : Occurred cost Option B : Mean cost Option C : Opportunity costs Option D : Weighted cost Option E : Correct Answer : Opportunity costs Read more

✅ C. Incremental cash flow

Option A : Irrelevant cash flow Option B : Relevant cash flow Option C : Incremental cash flow Option D : Decrease cash flow Option E : Correct Answer : Incremental cash flow Read more

✅ A. Inflation effects

Option A : Inflation effects Option B : Opportunity effects Option C : Equity effects Option D : Debt effects Option E : Correct Answer : Inflation effects Read more

✅ C. Taxation

Option A : Expansion Option B : Salvages Option C : Taxation Option D : Discounts Option E : Correct Answer : Taxation Read more

✅ D. Cost of capital

Option A : Cost of salvage Option B : Cost of interest Option C : Cost of taxation Option D : Cost of capital Option E : Correct Answer : Cost of capital Read more

✅ A. No inflation

Option A : No inflation Option B : High inflation Option C : No transactions Option D : No acceleration Option E : Correct Answer : No inflation Read more

✅ B. Weighted average cost of capital

Option A : Weighted average cost of interest Option B : Weighted average cost of capital Option C : Weighted average salvage value Option D : Mean cost of capital Option E : Correct Answer : Weighted average cost of capital Read more

✅ B. Non cash charge

Option A : Cash charge Option B : Non cash charge Option C : Cash flow discounts Option D : Net salvage discount Option E : Correct Answer : Non cash charge Read more