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WorksheetsCAPITAL BUDGETING
Total questions: 5
Worksheet time: 2mins
NPV stands for:
Net profitability value
Net present value
Net purchase value
Time value of money is considered in:
Pay-back period method
Accounting rate of return method
Discounted cash flow method
A set of projects in which the acceptance of one project means that the others cannot be accepted
Replacement Decision
Expansion Decision
Independent Projects
Mutually Exclusive Projects
An independent project should be accepted if it
produces a net present value that is greater than or equal to zero.
produces a net present value that is greater than the equivalent IRR.
has only one sign reversal.
produces a profitability index greater than or equal to zero.
___________ is the planning process used to determine whether an organization long term investments
Capital Rationing
Capital Budgeting
Cost of Capital
Leverage
