Net Present Value Multiple Choice Questions with Answers – PDF Download

The relationship between Economic Value Added (EVA) and the Net Present Value (NPV) is considered as

1. valued relationship
2. economic relationship
3. direct relationship
4. inverse relationship

In capital budgeting, the positive net present value results in

1. negative economic value added
2. positive economic value added
3. zero economic value added
4. percent economic value added

The project whose cash flows are sufficient to repay the capital invested for rate of return then the net present value will be

1. negative
2. zero
3. positive
4. independent

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

In capital budgeting, a technique which is based upon discounted cash flow is classified as

1. net present value method
2. net future value method
3. net capital budgeting method
4. net equity budgeting method