Skip to content
← SetsFinancial Management — Set 4
0 of 10

Financial Management Practice Questions — Set 4

10 free Financial Management reviewer questions with answers and explanations. Pindutin ang sagot mo para makita agad kung tama — kasama na ang paliwanag. Set 4 of 12.

31

What is capital budgeting?

32

Which capital budgeting method measures time to recover initial investment?

33

A project costs ₱800,000 and generates ₱200,000 annually. The payback period is:

34

Profitability Index is calculated as:

35

Mutually exclusive projects are those that:

36

SM Investments considers building a new mall costing ₱2B with NPV of ₱300M or a hotel costing ₱1.5B with NPV of ₱350M. Which should they choose?

37

The discount rate used in capital budgeting typically represents:

38

Sunk costs in capital budgeting should be:

39

What capital budgeting technique does NOT consider time value of money?

40

A project with IRR of 15% should be accepted if the cost of capital is: