15. If a firm has a limited capital budget and too many good capital projects to fund them all, it is said to be facing the problem of

a.

wealth optimization.

b.

capital rationing.

c.

constrained capital.

d.

profitability

2. What is meant by the term 'Net Present Value'?

a.

The future value of cash flows after netting out the initial cash flow.

b.

The gross sum of the final cash flow and the present value of future cash flows.

c.

The gross sum of the initial cash flow and the future value of future cash flows.

d.

The present value of future cash flows after netting out the initial cash flow.

19. MIRR method does not take into account the time value of money and it is not accurate as well.

a.

False

b.

True