Net present value, profitability index, payback and discounted payback are methods to______________?

A: Evaluate cash flow

B: Evaluate projects

C: Evaluate budgeting

D: Evaluate equity

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Evaluate projects

A type of project whose cash flows would not depend on each other is classified as______________?

A: Project net gain

B: Independent projects

C: Dependent projects

D: Net value projects

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Independent projects

A project whose cash flows are more than capital invested for rate of return then net present value will be___________?

A: Positive

B: Independent

C: Negative

D: Zero

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Positive

In mutually exclusive projects, project which is selected for comparison with others must have____________?

A: Higher net present value

B: Lower net present value

C: Zero net present value

D: All of above

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Higher net present value

Profitability index in capital budgeting is used for_________?

A: Negative projects

B: Relative projects

C: Evaluate projects

D: Earned projects

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Evaluate projects

Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as____________?

A: Valued relationship

B: Economic relationship

C: Direct relationship

D: Inverse relationship

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Direct relationship

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__________?

A: 5 years

B: 3.5 years

C: 4 years

D: 4.5 years

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3.5 years

Present value of future cash flows is divided by an initial cost of project to calculate_______?

A: Negative index

B: Exchange index

C: Project index

D: Profitability index

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Profitability index

First step in calculation of net present value is to find out_________?

A: Present value of equity

B: Future value of equity

C: Present value cash flow

D: Future value of cash flow

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Present value cash flow

Life that maximizes net present value of an asset is classified as__________?

A: Minimum life

B: Present value life

C: Economic life

D: Transaction life

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Economic life

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