Profitability Index MCQs Test Online PDF Download

Profitability index multiple choice questions (MCQs), profitability index test prep for online learning with business degree certificate eCourses. Learn basics of capital budgeting evaluating cash flows multiple choice questions (MCQs), profitability index quiz questions and answers. Career test prep with profitability index, net present value, present value of annuity test for online international business degree courses distance learning.

Learn basics of capital budgeting evaluating cash flows practice test MCQs: an uncovered cost at start of year is divided by full cashflow during recovery year then added in prior years to full recovery for calculating, for free online courses with options original period, investment period, payback period, forecasted period for online college business degree. Free skills assessment test is for online e-learning profitability index quiz questions for competitive in business majors for bachelor degree courses preparation.

MCQ on Profitability IndexQuiz PDF Download

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: An uncovered cost at start of year is divided by full cashflow 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