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

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Learn basics of capital budgeting evaluating cash flows quiz with multiple choice questions: a project whose cash flows are more than capital invested for rate of return then net present value will be, with choices independent, positive, negative, and zero for online business degree programs. Practice jobs' assessment test for online learning present value of annuity quiz questions with financial management MCQs for finance certifications.

## MCQs on Basics of Capital Budgeting Evaluating Cash Flows Test 1 PDF Book Download

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 the 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