M C Q s D r i v e

Management Sciences 5308 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.

Net present value, profitability index, payback and discounted payback are methods to______________?

A Evaluate cash flow
B Evaluate projects
C Evaluate budgeting
D Evaluate equity
Correct Answer: Evaluate projects

Cash inflows are revenues of project and are represented by__________?

A Hurdle number
B Relative number
C Negative numbers
D Positive numbers
Correct Answer: Positive numbers

Cash flow which starts negative than positive then again positive cash flow is classified as__________?

A Normal costs
B Non-normal costs
C Non-normal cash flow
D Normal cash flow
Correct Answer: Non-normal cash flow

If two independent projects having hurdle rate, then both projects should________?

A Be accepted
B Not be accepted
C Have capital acceptance
D Have return rate acceptance
Correct Answer: Be accepted

In estimating value of cash flows, compounded future value is classified as its__________?

A Terminal value
B Existed value
C Quit value
D Relative value
Correct Answer: Terminal value

In capital budgeting, positive net present value results in_________________?

A Negative economic value added
B Positive economic value added
C Zero economic value added
D Percent economic value added
Correct Answer: Positive economic value added

Life that maximizes net present value of an asset is classified as__________?

A Minimum life
B Present value life
C Economic life
D Transaction life
Correct Answer: Economic life

First step in calculation of net present value is to find out_________?

A Present value of equity
B Future value of equity
C Present value cash flow
D Future value of cash flow
Correct Answer: Present value cash flow

Present value of future cash flows is divided by an initial cost of project to calculate_______?

A Negative index
B Exchange index
C Project index
D Profitability index
Correct Answer: Profitability index

An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be__________?

A 5 years
B 3.5 years
C 4 years
D 4.5 years
Correct Answer: 5 years