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Capital Budgeting Quiz

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1. In capital budgeting, what is the primary financial consideration?

2. Which of the following capital budgeting techniques uses discounted cash flow?

3. Which factor doesn't influence a project's net present value (NPV)?

4. Why is sunk cost not considered in capital budgeting decisions?

5. Which of the following projects would a company using Payback Period Method to evaluate capital budgeting prefer?

6. Which method of evaluating capital budgeting decisions doesn't consider the time value of money?

7. What does 'profitability index' in capital budgeting refer to?

8. In capital budgeting, how is the internal rate of return (IRR) calculated?

9. Which of the following methods considers both the magnitude and timing of a project's cash flows?

10. A positive net present value (NPV) indicates that