Capital Budgeting MCQs
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MCQs 1-10
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1. A project costs $16,000.The estimated annual cash inflows during its 3 year life are $8,000, $7,000 and $6,000 respectively. What will be the pay-back period?
Correct!
Wrong!
2. To estimate an unknown number that lies between two known numbers is knows as ___________?
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3. Decision criterion with respect to profitability index to accept project if?
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4. ____________ of a project is the sum of all present values of all cash inflows minus present value of outflows?
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5. If you have to judge a project from its NPV, you will select the one with the______________?
Correct!
Wrong!
6. Criteria that measures how quickly project will return its original investment is?
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7. Capital budgeting is the process of identifying analyzing and selecting investments project whose returns are expected to extend beyond ____________________?
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8. Indifference criteria when BCR (Benefit Cost Ratio)?
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9. Criterion for IRR (Internal Rate of Return)?
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10. Process that involves decision making with respect to investment in fixed asset?
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Related Topics
Capital Budgeting Problems
Further Readings
References
Financial Management: Theory and Practice, Dr Eugene F Brigham & C Micheal Ehrhardt
Fundamentals of Financial Management: Concise Edition, Brigham Houston
The Economist Guide to Financial Management, John Tennet
Financial Management: Core Concepts, Raymond M Brooks
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