Free Cash Flow Multiple Choice Questions (MCQ) PDF Download

MCQ 1: The relevant cash flow which company expects when it implements the project is classified as

1. irrelevant cash flow
2. relevant cash flow
3. incremental cash flow
4. decrease cash flow

MCQ 2: An investment outlay cash flow is $4000, operating cash flow is $1000 and the salvage cash flow is $5000 then the free cash flow would be

1. 10000
2. 8000
3. zero
4. 4000

MCQ 3: The net investment in operating capital is $7000 and the net operating profit after taxes is $11,000 then the free cash flow will be

1. −$18000
2. 18000
3. −$4000
4. 4000

MCQ 4: The free cash flow is $15000 and the net investment in operating capital is $9000 then the net operating profit after taxes will be

1. 24000
2. 6000
3. −$6000
4. −$24000

MCQ 5: An operating cash flows is $12000 and the gross fixed asset expenditure is $5000 then the free cash flow will be

1. −$7000
2. 7000
3. 17000
4. −$17000