Deneme Sınavı Soruları

Which of the following is an advantage of common stock?

what is common stock?

1. If a project is independent, approve the project(s) that pays the initial investment back less than a specified payback period.
2. If a project is mutually exclusive, choose the project that provides the shortest payback period.
3. Payback period technique tells the length of time it takes to get the initial cash outflow back.
4. All you have to do is find when cumulative cash inflows will be equal to initial cash outflow.
5. Payback period technique assumes that all investment projects have the same level of risk.

Which of the statements above related to payback period technique are correct?

In which of the following is the interest rate floating and not fixed?

1. Estimating cash flow
2. Adding up the discounted cash flows to obtain NPV
3. Discounting cash flows by an appropriate discount rate
4. Projecting the risk differences of different projects

Which of the following are the steps of calculating net present value?