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Financial Management Competitive Exam: Practice Test 5 (Chapter 4)

Cash Flow Estimation and Risk Analysis Multiple Choice Questions (MCQs) PDF Download - 5

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Cash Flow Estimation & Risk Analysis MCQ with Answers PDF Download: Quiz 5

MCQ: 21

In cash flow estimation, the depreciation is considered as

  1. cash charge
  2. noncash charge
  3. cash flow discounts
  4. net salvage discount
MCQ: 22

The net operating profit after taxes is $4500, the net investment in operating capital is $8500 and then the free cash flow would be

  1. −$4000
  2. 4000
  3. −$18000
  4. 18000
MCQ: 23

The net investment in operating capital is subtracted from net operating profit after taxes to calculate

  1. relevant inflows
  2. free cash flow
  3. relevant outflows
  4. cash outlay
MCQ: 24

The project which is started by the firm for increasing the sales is classified as

  1. new expansion project
  2. old expanded project
  3. firm borrowing project
  4. product line selection
MCQ: 25

The real interest rate and the real cash flows do not include

  1. equity effects
  2. debt effects
  3. inflation effects
  4. opportunity effects

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