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 7 of 9

Q61.
The situation in which the company replaces existing assets with new assets is classified as
Discuss
Answer: (a).replacement projects
Q62.
The relevant cash flow which company expects when it implements the project is classified as
Discuss
Answer: (c).incremental cash flow
Q63.
The free cash flow is $12000, an operating cash flow is $4000, an investment outlay cash flow is $5000 then the salvage cash flow would be
Discuss
Answer: (d).3000
Q64.
The cash flows that should be considered for the decision in hand are classified as
Discuss
Answer: (a).relevant cash flows
Q65.
The nominal interest rates and the nominal cash flows are usually reflected the
Discuss
Answer: (a).inflation effects
Q66.
The net investment in operating capital is $5000 and the net operating profit after taxes is $8000 then the free cash flow would be
Discuss
Answer: (c).3000
Q67.
The situation in which the new business reduces an existing business of the firm is classified as
Discuss
Answer: (b).cannibalization effect
Q68.
In the cash flow estimation and risk analysis, the real rate will be equal to nominal rate if there is
Discuss
Answer: (a).no inflation
Q69.
In cash flow estimation, the depreciation shelters company's income from
Discuss
Answer: (c).taxation
Q70.
The weighted average cost of debt, preferred stock and common equity is classified as
Discuss
Answer: (d).cost of capital
Page 7 of 9