In estimating value of cash flows, compounded future value is classified as its__________?

A: Terminal value

B: Existed value

C: Quit value

D: Relative value

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Terminal value

If two independent projects having hurdle rate, then both projects should________?

A: Be accepted

B: Not be accepted

C: Have capital acceptance

D: Have return rate acceptance

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Be accepted

Cash flow which starts negative than positive then again positive cash flow is classified as__________?

A: Normal costs

B: Non-normal costs

C: Non-normal cash flow

D: Normal cash flow

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Non-normal cash flow

Cash inflows are revenues of project and are represented by__________?

A: Hurdle number

B: Relative number

C: Negative numbers

D: Positive numbers

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Positive numbers

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

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