NPV and IRR Formula Multiple Choice Questions (MCQ) PDF Download

MCQ 1: In independent projects evaluation, the results of internal rate of return and net present value lead to

1. cash flow decision
2. cost decision
3. same decisions
4. different decisions

MCQ 2: * The projects which are mutually exclusive but different on scale of production or time of completion than the

1. external return method
2. net present value of method
3. net future value method
4. internal return method

MCQ 3: The graph which is plotted for projected net present value and capital rates is called

1. net loss profile
2. net gain profile
3. net future value profile
4. net present value profile

MCQ 4: A point where the profile of net present value crosses the horizontal axis at the plotted graph indicates the project

1. costs
2. cash flows
3. internal rate of return
4. external rate of return

MCQ 5: In capital budgeting, the term of bond which has great sensitivity to interest rates is

1. long-term bonds
2. short-term bonds
3. internal term bonds
4. external term bonds