As an Amazon Associate I earn from qualifying purchases.

Profitability Index MCQs Quiz Online PDF Download eBook

Solve Profitability Index Multiple Choice Questions (MCQ), profitability index quiz answers PDF worksheet, finance practice test for online courses. Learn basics of capital budgeting evaluating cash flows Multiple Choice Questions and Answers (MCQs), "Profitability Index" quiz questions and answers for online courses for business management degree. Learn internal rate of return, applications of cash flow evaluation, present value of annuity test prep for best online colleges for business administration.

"An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be" Multiple Choice Questions (MCQ) on profitability index with choices 5 years, 3.5 years, 4 years, and 4.5 years for online courses for business management degree. Practice profitability index quiz questions for merit scholarship test and certificate programs for online bachelor's degree in business management.

MCQs on Profitability Index PDF Download eBook

MCQ: An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be

  1. 5 years
  2. 3.5 years
  3. 4 years
  4. 4.5 years

B

MCQ: An uncovered cost at the start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating

  1. original period
  2. investment period
  3. payback period
  4. forecasted period

C

MCQ: The modified rate of return and modified internal rate of return with exceed cost of capital if the net present value is

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

A

MCQ: The number of years forecasted to recover an original investment is classified as

  1. payback period
  2. forecasted period
  3. original period
  4. investment period

A

MCQ: The process in which the managers of the company identify projects to add value is classified as

  1. capital budgeting
  2. cost budgeting
  3. book value budgeting
  4. equity budgeting

A