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Profitability Index MCQ with Answers PDF

Practice Profitability Index Multiple Choice Questions (MCQ), financial management quiz answers PDF with live worksheets for online degrees. Solve basics of capital budgeting evaluating cash flows Multiple Choice Questions and Answers (MCQs), Profitability Index quiz questions bank for online courses for business management degree. "Profitability Index MCQ" book PDF: cash flow analysis, net present value, profitability index 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. Solve profitability index quiz questions for merit scholarship test and certificate programs for online bachelor's degree in business management.

MCQs on Profitability Index

1.

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

5 years
3.5 years
4 years
4.5 years

2.

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

original period
investment period
payback period
forecasted period

3.

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

positive
negative
zero
one

4.

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

payback period
forecasted period
original period
investment period

5.

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

capital budgeting
cost budgeting
book value budgeting
equity budgeting
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