In capital budgeting, positive net present value results in_________________?
(A) Negative economic value added
(B) Positive economic value added
(C) Zero economic value added
(D) Percent economic value added
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
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
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
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
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
An outstanding bond are also classified as__________?
(A) Standing bonds
(B) Outdated bonds
(C) Dated bonds
(D) Seasoned bonds
An annual interest payment divided by current price of bond is considered as_____________?
(A) Current yield
(B) Maturity yield
(C) Return yield
(D) Earning yield
Payment divided by par value is classified as______________?
(A) Divisible payment
(B) Coupon payment
(C) Par payment
(D) Per period payment