Net Cash Flow Notes Questions with Answers PDF Download – Test 7

MCQ 31: In calculation of net cash flow, the depreciation and amortization are treated as:

1. current liabilities
2. income expenses
3. non-cash revenues
4. non-cash charges

MCQ 32: In weighted average cost of capital, a company can affect its capital cost through:

1. policy of capital structure
2. policy of dividends
3. policy of investment
4. all of the above

MCQ 33: In the mutually exclusive projects, the project which is selected for comparison with others must have:

1. higher net present value
2. lower net present value
3. zero net present value
4. all of the above

MCQ 34: The yield on bond is 7% and the market required return is 14% then market risk premium would be:

1. 0.02
2. 0.21
3. 0.005
4. 0.07

MCQ 35: A risk associated with the project and the way considered by well diversified stockholder is classified as:

1. expected risk
2. beta risk
3. industry risk
4. returning risk