351. Situation in which firm limits expenditures on capital is classified as________?
A. Optimal rationing
B. Capital rationing
C. Marginal rationing
D. Transaction rationing

352. An internal rate of return in capital budgeting can be modified to make it representative of_________?
A. Relative outflow
B. Relative inflow
C. Relative cost
D. Relative profitability

353. Other factors held constant, greater project liquidity is because of___________?
A. Less project returns
B. Greater project return
C. Shorter payback period
D. Greater payback period

354. Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be_________?
A. Negative
B. Zero
C. Positive
D. Independent

355. Process in which managers of company identify projects to add value is classified as__________?
A. Capital budgeting
B. Cost budgeting
C. Book value budgeting
D. Equity budgeting

356. Number of years forecasted to recover an original investment is classified as________?
A. Payback period
B. Forecasted period
C. Original period
D. Investment period

357. In capital budgeting, a negative net present value result in______________?
A. Zero economic value added
B. Percent economic value added
C. Negative economic value added
D. Positive economic value added

358. Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is____________?
A. Positive
B. Negative
C. Zero
D. One

359. Set of projects or set of investments usually maximize firm value is classified as_________?
A. Optimal capital budget
B. Minimum capital budget
C. Maximum capital budget
D. Greater capital budget

360. In internal rate of returns, discount rate which forces net present values to become zero is classified as__________?
A. Positive rate of return
B. Negative rate of return
C. External rate of return
D. Internal rate of return

NOTE
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