Present Value of Annuity Multiple Choice Questions (MCQ) PDF Download

MCQ 1: A project whose cash flows are more than the capital invested for rate of return then the net present value will be

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

MCQ 2: In the mutually exclusive projects, the 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

MCQ 3: In capital budgeting, a negative net present value results in

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

MCQ 4: The situation in which one project is accepted while rejecting another project in comparison is classified as

1. present value consent
2. mutually exclusive
3. mutual project
4. mutual consent

MCQ 5: The sum of discounted cash flows is best defined as

1. technical equity
2. defined future value
3. project net present value
4. equity net present value