Project Analysis Multiple Choice Questions (MCQ) PDF Download

MCQ 1: The cash flows that could be generated from an owned asset by the company but not use in project are classified as

1. occurred cost
2. mean cost
3. opportunity costs
4. weighted cost

MCQ 2: The situation in which the company replaces existing assets with new assets is classified as

1. replacement projects
2. new projects
3. existing projects
4. internal projects

MCQ 3: The situation in which the new business reduces an existing business of the firm is classified as

1. non-cannibalization effect
2. cannibalization effect
3. external effect
4. internal effect

MCQ 4: In cash flow estimation, the depreciation shelters company's income from

1. expansion
2. salvages
3. taxation
4. discounts

MCQ 5: In cash flow estimation, the depreciation is considered as

1. cash charge
2. noncash charge
3. cash flow discounts
4. net salvage discount