cost benefit analysis

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Present value of cash inflows is $32,000 USD and present value of cash outflows is $25,000 USD then net present value is

Present value of cash inflows is $32,000 USD and present value of cash outflows is $25,000 USD then net present value is
  • A. $7,000
  • B. ($7,000)
  • C. $57,000
  • D. ($57,000)
  • Correct Answer: Option A

Process of translating cash flow into equivalent dollars at common base period is considered as

Process of translating cash flow into equivalent dollars at common base period is considered as
  • A. semiannual cash flow
  • B. annual cash flow
  • C. compounded cash flow
  • D. discounted cash flow
  • Correct Answer: Option D

If desired rate of return exceeded by actual rate of return then it is classified as

If desired rate of return exceeded by actual rate of return then it is classified as
  • A. positive cash flows
  • B. negative cash flows
  • C. future cash flows
  • D. present cash flow
  • Correct Answer: Option A

Present value of cash inflows is $50,000 USD and present value of cash outflows is $55,000 USD then net present value is

Present value of cash inflows is $50,000 USD and present value of cash outflows is $55,000 USD then net present value is
  • A. −$105000
  • B. −$5000
  • C. $5,000
  • D. $105,000
  • Correct Answer: Option B

If desired rate of return is minimum by actual rate of return then it is classified as

If desired rate of return is minimum by actual rate of return then it is classified as
  • A. future cash flows
  • B. present cash flow
  • C. positive cash flows
  • D. negative cash flows
  • Correct Answer: Option D