Cash Flow Analysis MCQ (Multiple Choice Questions) PDF Download

In cash flow analysis, the two projects are compared by using common life, is classified as

1. transaction approach
2. replacement chain approach
3. common life approach
4. Both B and C

The payback period in which an expected cash flows are discounted with the help of project cost of capital is classified as

1. discounted payback period
2. discounted rate of return
3. discounted cash flows
4. discounted project cost

In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as

1. greater annual annuity method
2. equivalent annual annuity
3. lesser annual annuity method
4. zero annual annuity method

The present value of future cash flows is $2000 and an initial cost is $1100 then the profitability index will be

1. 0.55
2. 1.82
3. 0.55
4. 0.0182

The cash flow which is available for all the investors of the company is classified as

1. extrinsic stock
2. intrinsic stock
3. investing cash
4. free cash flow