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 6 of 9

Q51.
In large expansion programs, the increased riskiness and the floatation cost associated with project can cause
Discuss
Answer: (a).rise in marginal cost of capital
Q52.
The cash inflows are the revenues of project and are represented by
Discuss
Answer: (d).positive numbers
Q53.
The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be
Discuss
Answer: (a).0.0319
Q54.
The project whose cash flows are less than the capital invested for required rate of return then the net present value will be
Discuss
Answer: (a).negative
Q55.
A type of project whose cash flows would not depend on each other is classified as
Discuss
Answer: (b).independent projects
Q56.
The net present value, profitability index, payback and discounted payback are the methods to
Discuss
Answer: (b).evaluate projects
Q57.
The required increasing in current assets and an increasing in current liabilities is subtracted to calculate
Discuss
Answer: (a).change in net working capital
Q58.
The cash flows that could be generated from an owned asset by the company but not use in project are classified as
Discuss
Answer: (c).opportunity costs
Q59.
In capital budgeting, the cost of capital is used as discount rate and is based on pre-determines
Discuss
Answer: (b).cost of debt and equity
Q60.
The economists consider the effects of the started project on other parts of company or on the environment of the company is called
Discuss
Answer: (a).externalities
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