# Basics of Capital Budgeting Evaluating Cash Flows Multiple Choice Questions 1 PDF Download

Practice basics of capital budgeting evaluating cash flows multiple choice questions (MCQs), finance test 1 for online exams. 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 helping answer key with choices as independent , positive , negative and zero of multiple choice questions 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 for viva exam preparation and job's interview questions. Study to learn present value of annuity quiz questions with online learning MCQs for competitive 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 the capital invested for rate of return then the net present value will be

- positive
- independent
- negative
- zero

A

MCQ. In the mutually exclusive projects, the 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. The relationship between Economic Value Added (EVA) and the 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, the positive net present value results in

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

B