MCQ On Basics Of Capital Budgeting Evaluating Cash Flows
5 Questions
| Attempts: 586
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Questions and Answers
- 1.Project whose cash flows are more than capital invested for rate of return then net present value
- A.
Positive
- B.
Independent
- C.
Negative
- D.
Zero
- 2.In mutually exclusive projects, project which is selected in comparison to other must have
- A.
Higher net present value
- B.
Lower net present value
- C.
Zero net present value
- D.
All of above
- 3.Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as
- A.
Valued relationship
- B.
Economic relationship
- C.
Direct relationship
- D.
Inverse relationship
- 4.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 is
- A.
5 years
- B.
3.5 years
- C.
4 years
- D.
4.5 years
- 5.In capital budgeting, positive net present value results in
- A.
Negative economic value added
- B.
Positive economic value added
- C.
Zero economic value added
- D.
Percent economic value added
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