Profitability Index MCQs & Quiz Online PDF Book Download

Profitability index multiple choice questions (MCQs), profitability index quiz answers to learn online finance courses. Basics of capital budgeting evaluating cash flows MCQs, profitability index quiz questions and answers for masters degree in business management. Learn cash inflows and outflows, internal rate of return, applications of cash flow evaluation, present value of annuity, profitability index test prep for business analyst certification.

Learn basics of capital budgeting evaluating cash flows 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 masters degree in business management. Practice merit scholarships assessment test, online learning profitability index quiz questions for competitive in business majors .

MCQs on Profitability Index PDF Book 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 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 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 managers of company identify projects to add value is classified as

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

A