If the real rate is 16% and an inflation rate is 8%, then the nominal rate of return will be __________?
A. 27.28% B. 25.28% C. 22.28 D. 21.28
Accounting MCQs with Answers
A concept which explains a received money in present time, is more valuable than money received in future is called __________?
A. lead value of money B. storage value of money C. time value of money D. cash value of money
If the net initial investment is $6850000 and the uniform increases yearly cash flows is $2050000, then payback period will be _____________?
A. 3.34 years B. 4.34 years C. 5.34 years D. 6.34 years
If an initial investment is $765000, the payback period is 4.5 years, then increase in future cash flow will be __________?
A. $5,645,000 B. $6,442,500 C. $3,442,500 D. $5,442,500
The categories of cash flows include __________?
A. net initial investment B. cash flow from operations after paying taxes C. cash flow from terminal disposal after paying taxes D. all of above
The net initial investment is divided by uniform increasing in future cash flows to calculate __________?
A. discounting period B. investment period C. payback period D. earning period
If the nominal rate is 26% and the inflation rate is 12%, then the real rate can be __________?
A. 13.75% B. 11.65% C. 12.50% D. 13.50%
If the payback period is 4 years and the uniform increases in cash flows per year is $2750000, then the net initial investment can be _____________?
A. $10,511,000 B. $12,105,000 C. $1,100,000 D. $11,000,000
The method, which calculates the time to recoup initial investment of project in form of expected cash flows is known as __________?
A. net value cash flow method B. payback method C. single cash flow method D. lean cash flow method
The rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as _________?
A. nominal rate of return B. accrual accounting rate of return C. real rate of return D. required rate of return