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.

A project which have one series of cash inflows and results in one or more cash outflows is classified as __________

A abnormal costs
B normal cash flows
C abnormal cash flow
D normal costs
Correct Answer: normal cash flows

The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is _________?

A 8200
B 16000
C 0.0064
D 1562.5
Correct Answer: 16000

The situation in which the firm limits the expenditures on capital is classified as __________?

A optimal rationing
B capital rationing
C marginal rationing
D transaction rationing
Correct Answer: capital rationing

In capital budgeting, the number of non-normal cash flows having internal rate of returns are _________?

A one
B multiple
C accepted
D non-accepted
Correct Answer: multiple

In calculation of internal rate of return, an assumption states that received cash flow from the project must __________?

A be reinvested
B not be reinvested
C be earned
D not be earned
Correct Answer: be reinvested

Other factors held constant, the greater project liquidity is because of ___________?

A less project return
B greater project return
C shorter payback period
D greater payback period
Correct Answer: shorter payback period

The profitability index in capital budgeting is used for __________?

A negative projects
B relative projects
C evaluate projects
D earned projects
Correct Answer: evaluate projects

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