Profitability Index MCQs Quiz Online PDF eBook Download

Learn profitability index MCQs, profitability index quiz answers pdf to study online finance degree course. Practice basics of capital budgeting evaluating cash flows multiple choice questions & answers (MCQs), "Profitability Index" quiz questions and answers for online courses for business management degree. Learn internal rate of return, applications of cash flow evaluation, present value of annuity test prep for best online colleges for business administration.

Practice profitability index 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, with choices 5 years, 3.5 years, 4 years, and 4.5 years for online courses for business management degree. Practice merit scholarships assessment test, online learning profitability index quiz questions for competitive in business majors for online bachelor's degree in business management.

MCQs on Profitability Index PDF eBook Download

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

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

B

MCQ: An uncovered cost at the start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating

  1. original period
  2. investment period
  3. payback period
  4. forecasted period

C

MCQ: Modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is

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

A

MCQ: Number of years forecasted to recover an original investment is classified as

  1. payback period
  2. forecasted period
  3. original period
  4. investment period

A

MCQ: Process in which the managers of the company identify projects to add value is classified as

  1. capital budgeting
  2. cost budgeting
  3. book value budgeting
  4. equity budgeting

A