SECTION A

Multiple Choice Questions

$10$ Marks

Instruction:

Answer all questions. From the alternatives listed below for each question, identify the

one which you consider most appropriately answers the question and write the letter that

corresponds to your answer in the booklet provided. Each correct answer is worth one

mark.

Question $1$

Capital Budgeting refers to the

A$.$ raising of capital.

B$.$ overall cost of capital.

C$.$ management technique of planning capital expenditure of the company.

D$.$ cost of capital.

Question $2$

The payback period shows the

A$.$ recovery period of money.

B$.$ time value of money.

C$.$ Cash outflow.

D$.$ Cash inflow.

Question $3$

The decision rule under Net Present Value method is

A$.$ NPV $>0$ accept.

B$.$ NPV $<mn\; id="EditorElement\_534477">0</mn>$ reject.

C$.$ Both A and B$.$

D$.NPV=0$ accept.

Question $4$

The objective of receivable management is to promote

A: cost

B: management

C: staff and customers

D: sales and profit