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.

The net present value, profitability index, payback and discounted payback are the methods to __________?

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

A type of project whose cash flows would not depend on each other is classified as ____________?

A project net gain
B independent projects
C dependent projects
D net value projects
Correct Answer: independent projects

The project whose cash flows are less than the capital invested for required rate of return then the net present value will be ___________?

A negative
B zero
C positive
D independent
Correct Answer: negative

The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be ____________?

A 0.0319
B 3.19
C 0.31 times
D 5450
Correct Answer: 0.0319

The cash inflows are the revenues of project and are represented by ___________?

A hurdle number
B relative number
C negative numbers
D positive numbers
Correct Answer: positive numbers

In large expansion programs, the increased riskiness and the floatation cost associated with project can cause ___________?

A rise in marginal cost of capital
B fall in marginal cost of capital
C rise in transaction cost of capital
D rise in transaction cost of capital
Correct Answer: rise in marginal cost of capital

An initial cost is $6000 and the probability index is 5.6 then the present value of cash flows will be __________?

A 25000
B 28000
C 33600
D 30000
Correct Answer: 33600

An increase in marginal cost of capital and the capital rationing are two arising complications of __________?

A maximum capital budget
B greater capital budget
C optimal capital budget
D minimum capital budget
Correct Answer: optimal capital budget

In capital budgeting, a technique which is based upon discounted cash flow is classified as ___________?

A net present value method
B net future value method
C net capital budgeting method
D net equity budgeting method
Correct Answer: net present value method

In estimating value of cash flows, the compounded future value is classified as its _________?

A terminal value
B existed value
C quit value
D relative value
Correct Answer: terminal value