1-In VED analysis, the vital category includes inventory which is: a- Easy to replace

b- Temporary items

c- Necessary for production process

d- Not important

2-Inventory of semi-manufactured products is called a-: Consumables

b-: Work in progress

c-: Raw materials

d-: Finished goods

3-Which of the following is the disadvantage of the NPV method? a- It considers the total benefits arising out of the proposal.

b- It recognizes the time value of money.

c- It is the best method for the selection of mutually exclusive projects

d- Precise measurement of discount rate is difficult

4-X Ltd issues OMR 50,000, 6%debentures at par. The tax rate of the company is 30%. Compute the cost of Debt capital. a- 16.7%

b- 2.4%

c- 4.2%

d- 20%

5-Which of the followings is not an advantages of payback period a- Easy to calculate

b- Simple to understand

c- It ignores time value of money

d- Low calculation cost and time