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

Learn basics of capital budgeting evaluating cash flows multiple choice questions (MCQs), financial management test 1 for online course prep exams. Practice present value of annuity MCQs questions and answers on present value of annuity, net present value, profitability index for undergraduate business degree preparation.

Free basics of capital budgeting evaluating cash flows quiz online, study guide has multiple choice question on a project whose cash flows are more than capital invested for rate of return then net present value will be with options independent , positive , negative and zero to test online e-learning skills for viva exam prep and job's interview questions with answers key. 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 capital invested for rate of return then net present value will be

  1. positive
  2. independent
  3. negative
  4. zero

A

MCQ. In mutually exclusive projects, project which is selected for comparison with others must have

  1. higher net present value
  2. lower net present value
  3. zero net present value
  4. all of the above

A

MCQ. Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as

  1. valued relationship
  2. economic relationship
  3. direct relationship
  4. 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

  1. 5 years
  2. 3.5 years
  3. 4 years
  4. 4.5 years

B

MCQ. In capital budgeting, positive net present value results in

  1. negative economic value added
  2. positive economic value added
  3. zero economic value added
  4. percent economic value added

B