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Basics of Capital Budgeting Evaluating Cash Flows Multiple Choice Questions and Answers PDF – Test 5

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Free Basics of Capital Budgeting Evaluating Cash Flows MCQs App Download: In capital budgeting, the term of bond which has great sensitivity to interest rates is; MCQ with answers: short-term bonds, long-term bonds, internal term bonds, and external term bonds. Solve Fama French Three Factor Model Quiz Questions, download Google e-Book (Free Chapter) to improve study efficiency.

Basics of Capital Budgeting Evaluating Cash Flows MCQs with Answers PDF Download – Test 5

MCQ 21: The number of years forecasted to recover an original investment is classified as:

  1. payback period
  2. forecasted period
  3. original period
  4. investment period

MCQ 22: In capital budgeting, the term of bond which has great sensitivity to interest rates is:

  1. long-term bonds
  2. short-term bonds
  3. internal term bonds
  4. external term bonds

MCQ 23: The process in which the managers of the company identify projects to add value is classified as:

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

MCQ 24: A discount rate which is equal to the present value of TV to the project cost present value is classified as:

  1. negative internal rate of return
  2. modified internal rate of return
  3. existed internal rate of return
  4. relative rate of return

MCQ 25: An uncovered cost at the start of the year is $300, full cash flow during recovery year is $650 and prior years to full recovery is 4 then payback would be:

  1. 3.46 years
  2. 2.46 years
  3. 5.46 years
  4. 4.46 years

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