Present Value of Annuity Multiple Choice Questions with Answers – PDF Download

MCQ 1: A project whose cash flows are more than the capital invested for rate of return then the net present value will be:

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

MCQ 2: In the mutually exclusive projects, the project which is selected for comparison with others must have:

1. higher net present value
2. lower net present value
3. zero net present value
4. all of the above

MCQ 3: In capital budgeting, a negative net present value results in:

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

MCQ 4: 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

MCQ 5: The sum of discounted cash flows is best defined as:

1. technical equity
2. defined future value
3. project net present value
4. equity net present value