Net Present Value Multiple Choice Questions with Answers – PDF Download

MCQ 1: 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

MCQ 2: 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

MCQ 3: 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

MCQ 4: 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 5: 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