profitability index

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Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is

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
  • Correct Answer: Option A

An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be

An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be
  • A. 5 years
  • B. 3.5 years
  • C. 4 years
  • D. 4.5 years
  • Correct Answer: Option B