Project Analysis Multiple Choice Questions with Answers – 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