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), mastering financial management test 1 for online learning, course exam prep. Practice present value of annuity MCQs, basics of capital budgeting evaluating cash flows questions and answers on present value of annuity, net present value, profitability index test for online financial risk management courses distance learning.

Free online basics of capital budgeting evaluating cash flows quiz, self-study student guide has multiple choice question: 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 for undergraduate students to compete in online entrance exams for postgraduate and PhD degree programs. Study to learn online present value of annuity quiz questions with financial management MCQs with MBA GMAT practice tests for GMAT exam preparation.

MCQ on Basics of Capital Budgeting Evaluating Cash Flows Test 1 Quiz PDF Download

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