# Basics of Capital Budgeting Evaluating Cash Flows Multiple Choice Questions Test 1 Tests pdf Download

Practice basics of capital budgeting evaluating cash flows multiple choice questions (MCQs), finance test 1 online to learn. Practice present value of annuity MCQs questions and answers on present value of annuity, net present value, profitability index with answers. Free basics of capital budgeting evaluating cash flows quiz, online study guide has answer key with choices as independent, positive, negative and zero of multiple choice questions (MCQ) as a project whose cash flows are more than capital invested for rate of return then net present value will be to test learning skills. Study to learn present value of annuity quiz questions to practice MCQ based online exam preparation test.

## MCQ on Basics of Capital Budgeting Evaluating Cash Flows Quiz pdf Download Test 1

MCQ. A project whose cash flows are more than capital invested for rate of return then net present value will be

- positive
- independent
- negative
- zero

A

MCQ. In mutually exclusive projects, project which is selected for comparison with others must have

- higher net present value
- lower net present value
- zero net present value
- all of above

A

MCQ. Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as

- valued relationship
- economic relationship
- direct relationship
- inverse relationship

C

MCQ. An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be

- 5 years
- 3.5 years
- 4 years
- 4.5 years

B

MCQ. In capital budgeting, positive net present value results in

- negative economic value added
- positive economic value added
- zero economic value added
- percent economic value added

B