NPV and IRR Formula Multiple Choice Questions with Answers – PDF Download

MCQ 1: In independent projects evaluation, the results of internal rate of return and net present value lead to:

1. cash flow decision
2. cost decision
3. same decisions
4. different decisions

MCQ 2: * The projects which are mutually exclusive but different on scale of production or time of completion than the:

1. external return method
2. net present value of method
3. net future value method
4. internal return method

MCQ 3: The graph which is plotted for projected net present value and capital rates is called:

1. net loss profile
2. net gain profile
3. net future value profile
4. net present value profile

MCQ 4: A point where the profile of net present value crosses the horizontal axis at the plotted graph indicates the project:

1. costs
2. cash flows
3. internal rate of return
4. external rate of return

MCQ 5: In capital budgeting, the term of bond which has great sensitivity to interest rates is:

1. long-term bonds
2. short-term bonds
3. internal term bonds
4. external term bonds