Multiple Choice questions

1. The term capital investment refers :

a) To a statement of the output by product and is generally expressed in units.

b) To large expenditures made to purchase assets, develop new products lines or, subsidiary companies

c) To the sales to be achieved and presents the commercial action resources to be used

d) To the specific objectives and ressources to achieve the general goals of a company

2. Which of the following is not an non financial consideration in order to evaluate an investment by a company ?

a) The quality of a product

b) The employee morale

c) The corporate Period

d) The corporate image

3. The ROI is :

a) The difference between the total present value of the net cash flows and the cost of investment over a period of time.

b) The average annual net income from an investment expressed as a percentage of the average amount invested

c) The process by which the present value of cash flows (referred to as the discounted cash flows) is determined

d) The length of time necessary to recover the entire cost of an investment.