In alternative investments, constant cash flow stream is equal to initial cash flow stream in approach which is classified as

A greater annual annuity method
B equivalent annual annuity
C lesser annual annuity method
D zero annual annuity method

Correct Answer: equivalent annual annuity

In alternative investments, constant cash flow stream is equal to initial cash flow stream in approach which is classified as equivalent annual annuity. The equivalent annual annuity approach is one of two methods used in capital budgeting to compare mutually exclusive projects with unequal lives. The EAA approach calculates the constant annual cash flow generated by a project over its lifespan if it was an annuity.
Bissoy MCQ
#Commerce #Financial Management

Related Questions

The availability of cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as :
A Liquidity
B Cash crunch
C Credit
D Markerability
A , B and C enter into partnership by making investments in the ratio 3:5:7 . after a year , C invests another tk.337600 while a withdraws tk. 45600, the ratio of investments then changes to 24:59:87 . How much does a invest initially ?
A tk.140600
B tk.141600
C tk.131600
D tk.140500
A,B and C enter into partnership by making investments in the ratio 3: 5: 7. After a year, C invests another Tk. 337600 while a withdraws Tk. 45600 . The ratio of investments then changes to 24:59:67. How much doses A invest initially?
A Tk. 140600
B Tk. 141600
C Tk.131600
D Tk. 140500
STP-তে একটি আদর্শ গ্যাসকে প্রথমে তার প্রাথমিক আয়তনের এক-তৃতীয়াংশে সংকুচিত করা হয়, এবং তারপর প্রসারিত হতে দেওয়া হয় যতক্ষণ না তার চাপ প্রাথমিক চাপের অর্ধেক হয়। উভয় প্রক্রিয়ায় গ্যাসের তাপমাত্রা স্থির থাকে। যদি গ্যাসের প্রাথমিক অভ্যন্তরীণ শক্তি । হয়ে থাকে তাহলে এর চূড়ান্ত অভ্যন্তরীণ শক্তি কত? (An ideal gas at STP is first compressed to one-third of its initial volume and then allowed to expand until its pressure is half the initial pressure. The temperature of the gas remains constant during both the processes. If the initial internal energy of the gas is U, what is its final internal energy?)
A U/3
B U/2
C U
D 2U/3
Cash flow which starts negative then positive than again positive cash flow is classified as
A normal costs
B non-normal costs
C non-normal cash flow
D normal cash flow
A project which have one series of cash inflows and results in one or more cash outflows is classified as
A abnormal costs
B normal cash flows
C abnormal cash flow
D normal costs
'Ready cash' 'Q-cash; E-cash'িএর মাধ্যমে বাণিজ্যিক ব্যাংকগুলো কী সুবিধা দিচ্ছে?
A দিনরাত যে কোন সময় অর্থ উত্তোলন
B দিনরাত যে কোন সময় অর্থ জমাদান
C এক হিসাব থেকে অন্য হিসাবে অর্থ স্থানান্তর
D কোনটিই নয়
On an accounting report of cash flows an "increase (decrease) in cash and cash equivalents" shows
A a cash flow from operating activities
B a cash flow from investing activities.
C a cash flow from financing activities.
D none of above.
Rate of return which considers riskiness and an available returns on investments is classified as
A constant dividend
B constant rate
C maximum rate of return
D minimum acceptable rate of return
Simplicity with which bondholders and shareholders can change their investments into cash is known
A barter
B hedging
C arbitrage
D liquidity

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