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Profitability Index Quiz Questions PDF p. 76

Practice Profitability Index quiz questions and answers, profitability index MCQs with answers PDF 76 to solve Financial Management mock tests for online college programs. Solve Basics of Capital Budgeting Evaluating Cash Flows MCQ questions bank, profitability index Multiple Choice Questions (MCQ) for online college degrees. "Profitability index Quiz" book PDF: stand alone risks, valuing stocks: non constant growth rate, financial management: balance sheets, estimating cash flows, profitability index test prep for online college courses.

"The profitability index in capital budgeting is used for", profitability index Multiple Choice Questions (MCQ) with choices relative projects, negative projects, evaluate projects, and earned projects for online bachelor's degree in business administration. Practice basics of capital budgeting evaluating cash flows questions and answers to improve problem solving skills for accredited online business administration degree.

Quiz on Profitability Index


The profitability index in capital budgeting is used for

negative projects
relative projects
evaluate projects
earned projects


The net operating profit after taxes is $4500, the net investment in operating capital is $8500 and then the free cash flow would be



A company that sells products to customer without demanding immediate payment but record it in balance sheet as

account payable
account receivable
account equivalent
account investment


The third step in calculating value of stock with non-constant growth rate is to find

p.v of expected dividends
f.v of expected dividends
p.v of intrinsic rate
f.v of intrinsic rate


The probability distribution is classified as normal if expected return lies between

( + 1 and -1)
( + 2 and -2)
( + 3 and -3)
( + 4 and -4)
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