#1
Which capital budgeting technique does not consider the time value of money?
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period
Profitability Index (PI)
#2
Which capital budgeting technique considers the cash flows over the entire life of the project?
Payback Period
Net Present Value (NPV)
Internal Rate of Return (IRR)
Profitability Index (PI)
#3
Which capital budgeting technique accounts for both the size and timing of cash flows?
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period
Profitability Index (PI)
#4
Which capital budgeting technique is also known as the discounted cash flow method?
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period
Profitability Index (PI)
#5
Which capital budgeting technique gives equal weight to all cash flows regardless of timing?
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period
Profitability Index (PI)
#6
Which capital budgeting technique is preferred when comparing mutually exclusive projects?
Net Present Value (NPV)
Payback Period
Profitability Index (PI)
Internal Rate of Return (IRR)
#7
Which capital budgeting technique can result in multiple IRRs?
Payback Period
Net Present Value (NPV)
Internal Rate of Return (IRR)
Profitability Index (PI)
#8
Which capital budgeting technique assumes reinvestment at the project's hurdle rate?
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period
Profitability Index (PI)
#9
Which capital budgeting technique is criticized for ignoring cash flows beyond the payback period?
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period
Profitability Index (PI)
#10
Which capital budgeting technique assumes that cash inflows are reinvested at the cost of capital?
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period
Profitability Index (PI)
#11
Which capital budgeting technique may not rank mutually exclusive projects consistently when the projects differ significantly in scale?
Net Present Value (NPV)
Payback Period
Profitability Index (PI)
Internal Rate of Return (IRR)
#12
Which capital budgeting technique may not be suitable for evaluating projects with unconventional cash flow patterns?
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period
Profitability Index (PI)
#13
Which capital budgeting technique adjusts for the risk associated with the project's cash flows?
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period
Profitability Index (PI)
#14
Which capital budgeting technique is the most comprehensive in considering both timing and magnitude of cash flows?
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period
Profitability Index (PI)
#15
Which capital budgeting technique may not provide a clear decision when projects have different scales?
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period
Profitability Index (PI)