Capital Budgeting Quiz 5 (5 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. The values of the future net incomes discounted by the cost of capital are called

Correct Answer: D) Net present values.

2. The NPV of projects A & B is positive, the two project proposals are independent, so the decision is

Correct Answer: C) Choose Project A & B as long as there are sufficient funds.

3. Which one of the following represents the rate of return a firm must earn on its assets if it is to maintain the current value of its securities?

Correct Answer: D) Weighted average cost of capital.

4. Which of the following businesses would the simple payback period method be most appropriate?

Correct Answer: A) Restaurant.

5. Strength dari konsep Internal Rate of Return adalah

Correct Answer: D) Tells whether firm value is increased.