Profitability Index MCQs Quiz Online PDF Download

Learn profitability index MCQs, financial management test for online courses learning and test prep to practice. Basics of capital budgeting evaluating cash flows quiz has multiple choice questions (MCQ), profitability index quiz questions and answers to learn for online financial management course test.

Financial management practice test MCQ on 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 with options 5 years , 3.5 years , 4 years and 4.5 years problem solving skills for viva, competitive exam prep, interview questions with answer key. Free study guide is for online learning profitability index quiz with MCQs to practice test questions with answers.

MCQs on Profitability Index Quiz 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