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Financial Management MCQs (BBA Finance) From Textbook

Financial Management MCQs – Practice Test 7 (Chapter 2)

Basics of Capital Budgeting Evaluating Cash Flows Quiz with Answers PDF Download – Test 7

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Basics of Capital Budgeting Evaluating Cash Flows Quiz – Practice Test 7 PDF Download

MCQ 31: In capital budgeting, the number of non-normal cash flows having internal rate of returns are:

  1. one
  2. multiple
  3. accepted
  4. non-accepted

MCQ 32: An internal rate of return in capital budgeting can be modified to make it the representative of:

  1. relative outflow
  2. relative inflow
  3. relative cost
  4. relative profitability

MCQ 33: The situation in which the firm limits the expenditures on capital is classified as:

  1. optimal rationing
  2. capital rationing
  3. marginal rationing
  4. transaction rationing

MCQ 34: The initial cost is $5000 and the probability index is 3.2 then the present value of cash flows is:

  1. 8200
  2. 16000
  3. 0.0064
  4. 1562.5

MCQ 35: A project which have one series of cash inflows and results in one or more cash outflows is classified as:

  1. abnormal costs
  2. normal cash flows
  3. abnormal cash flow
  4. normal costs

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