Financial Management Study App | Basics of Capital Budgeting Evaluating Cash Flows Notes e-Book PDF

Financial Management MCQs (BBA Finance) From Textbook

Financial Management MCQs – Practice Test 8 (Chapter 2)

Basics of Capital Budgeting Evaluating Cash Flows Notes Questions with Answers PDF Download – Test 8

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Basics of Capital Budgeting Evaluating Cash Flows MCQs – Practice Test 8 PDF Download

MCQ 36: The present value of future cash flows is divided by an initial cost of the project to calculate:

  1. negative index
  2. exchange index
  3. project index
  4. profitability index

MCQ 37: If the net present value is positive then the profitability index will be:

  1. greater than two
  2. equal to
  3. less than one
  4. greater than one

MCQ 38: The cash flows occurring with more than one change in sign of cash flow are classified as:

  1. non-normal cash flow
  2. normal cash flow
  3. normal costs
  4. non-normal costs

MCQ 39: The first step in calculation of net present value is to find out:

  1. present value of equity
  2. future value of equity
  3. present value cash flow
  4. future value of cash flow

MCQ 40: The situation in which one project is accepted while rejecting another project in comparison is classified as:

  1. present value consent
  2. mutually exclusive
  3. mutual project
  4. mutual consent

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