Estimating Cash Flows Multiple Choice Questions (MCQ) PDF Download

MCQ 1: The free cash flow is $12000, an operating cash flow is $4000, an investment outlay cash flow is $5000 then the salvage cash flow would be

1. −$21000
2. 21000
3. −$3000
4. 3000

MCQ 2: The cash flows that should be considered for the decision in hand are classified as

1. relevant cash flows
2. irrelevant cash flows
3. marginal cash flows
4. transaction cash flows

MCQ 3: The net investment in operating capital is $5000 and the net operating profit after taxes is $8000 then the free cash flow would be

1. 13000
2. −$3000
3. 3000
4. −$13000

MCQ 4: The free cash flow is $17000 and the net investment in operating capital is $10000 then the net operating profit after taxes would be

1. 7000
2. 27000
3. −$27000
4. −$7000

MCQ 5: An investment outlay cash flow is $2000, an operating cash flow is $1500 and the salvage cash flow is $3000 then the free cash flow would be

1. 500
2. 2500
3. 0.065
4. 6500