Budgeting and Cash Flow Estimation MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Budgeting and Cash Flow Estimation, a fundamental topic in the field of Financial Management and Financial Markets. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Budgeting and Cash Flow Estimation MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Budgeting and Cash Flow Estimation mcq questions that explore various aspects of Budgeting and Cash Flow Estimation problems. Each MCQ is crafted to challenge your understanding of Budgeting and Cash Flow Estimation principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Financial Management and Financial Markets tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Budgeting and Cash Flow Estimation MCQs are your pathway to success in mastering this essential Financial Management and Financial Markets topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Budgeting and Cash Flow Estimation. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Budgeting and Cash Flow Estimation knowledge to the test? Let's get started with our carefully curated MCQs!

Budgeting and Cash Flow Estimation MCQs | Page 1 of 9

Q1.
A project whose cash flows are more than the capital invested for rate of return then the net present value will be
Discuss
Answer: (a).positive
Q2.
In the mutually exclusive projects, the project which is selected for comparison with others must have
Discuss
Answer: (a).higher net present value
Q3.
The relationship between Economic Value Added (EVA) and the Net Present Value (NPV) is considered as
Discuss
Answer: (c).direct relationship
Q4.
An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be
Discuss
Answer: (b).3.5 years
Discuss
Answer: (b).positive economic value added
Q6.
An uncovered cost at the start of year is divided by full cash flow during recovery year then added in prior years to full recovery for calculating
Discuss
Answer: (c).payback period
Q7.
In cash flow analysis, the two projects are compared by using common life, is classified as
Discuss
Answer: (d).both b and c
Q8.
Other factors held constant, but the lesser project liquidity is because of
Discuss
Answer: (b).greater payback period
Q9.
In capital budgeting, an internal rate of return of the project is classified as its
Discuss
Answer: (b).internal rate of return
Q10.
In independent projects evaluation, the results of internal rate of return and net present value lead to
Discuss
Answer: (c).same decisions
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