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

Practice BBA financial management test 1 with MCQ on present value of annuity online for learning. Practice basics of capital budgeting evaluating cash flows multiple choice questions (MCQ) on present value of annuity, net present value, profitability index,. Free study guide has answering options 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 - 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 cashflow 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