M C Q s D r i v e

Management Sciences 5307 MCQs [All-Courses]

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Management Sciences focuses on the planning, organizing, leading, and controlling of resources to achieve organizational goals.This subject is highly important for competitive exams, academic study, and professional careers in the business and public sectors.

The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be ___________?
A 0.55
B 1.82
C 0.55
D 0.0182
Correct Answer: 1.82
The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be ____________?
A negative
B zero
C positive
D independent
Correct Answer: zero
An uncovered cost at the start of the year is $300, full cash flow during recovery year is $650 and prior years to full recovery is 4 then payback would be _________?
A 3.46 years
B 2.46 years
C 5.46 years
D 4.46 years
Correct Answer: 4.46 years
A discount rate which is equal to the present value of TV to the project cost present value is classified as _________?
A negative internal rate of return
B modified internal rate of return
C existed internal rate of return
D relative rate of return
Correct Answer: modified internal rate of return
The process in which the managers of the company identify projects to add value is classified as __________?
A capital budgeting
B cost budgeting
C book value budgeting
D equity budgeting
Correct Answer: capital budgeting
In capital budgeting, the term of bond which has great sensitivity to interest rates is __________?
A long-term bonds
B short-term bonds
C internal term bonds
D external term bonds
Correct Answer: long-term bonds
The number of years forecasted to recover an original investment is classified as ___________?
A payback period
B forecasted period
C original period
D investment period
Correct Answer: payback period
In capital budgeting, a negative net present value results in _________?
A zero economic value added
B percent economic value added
C negative economic value added
D positive economic value added
Correct Answer: negative economic value added
In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as __________?
A greater annual annuity method
B equivalent annual annuity
C lesser annual annuity method
D zero annual annuity method
Correct Answer: equivalent annual annuity
The payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as __________?
A discounted payback period
B discounted rate of return
C discounted cash flows
D discounted project cost
Correct Answer: discounted payback period