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 5 of 9

Q41.
The sum of discounted cash flows is best defined as
Discuss
Answer: (c).project net present value
Q42.
The life that maximizes net present value of an asset is classified as
Discuss
Answer: (c).economic life
Q43.
If two independent projects having hurdle rate then both projects should
Discuss
Answer: (a).be accepted
Q44.
The cash outflows are the costs of project and are represented by
Discuss
Answer: (a).negative numbers
Q45.
In capital budgeting, two projects having cost of capital as 12% is classified as
Discuss
Answer: (a).hurdle rate
Q46.
The cash flow which starts negative then positive then again positive cash flow is classified as
Discuss
Answer: (c).non-normal cash flow
Q47.
In estimating value of cash flows, the compounded future value is classified as its
Discuss
Answer: (a).terminal value
Q48.
In capital budgeting, a technique which is based upon discounted cash flow is classified as
Discuss
Answer: (a).net present value method
Q49.
An increase in marginal cost of capital and the capital rationing are two arising complications of
Discuss
Answer: (c).optimal capital budget
Q50.
An initial cost is $6000 and the probability index is 5.6 then the present value of cash flows will be
Discuss
Answer: (c).33600
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