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 8 of 9

Q71.
An investment outlay cash flow is $4000, operating cash flow is $1000 and the salvage cash flow is $5000 then the free cash flow would be
Discuss
Answer: (a).10000
Q72.
The rate of return which is required to satisfy stockholders and debt holders is classified as
Discuss
Answer: (b).weighted average cost of capital
Q73.
The net investment in operating capital is $7000 and the net operating profit after taxes is $11,000 then the free cash flow will be
Discuss
Answer: (d).4000
Q74.
The free cash flow is $17000 and the net investment in operating capital is $10000 then the net operating profit after taxes would be
Discuss
Answer: (b).27000
Q75.
An investment outlay cash flow is $2000, an operating cash flow is $1500 and the salvage cash flow is $3000 then the free cash flow would be
Discuss
Answer: (d).6500
Q76.
The free cash flow is $15000 and the net investment in operating capital is $9000 then the net operating profit after taxes will be
Discuss
Answer: (a).24000
Q77.
In cash flow estimation, the depreciation is considered as
Discuss
Answer: (b).noncash charge
Q78.
The net operating profit after taxes is $4500, the net investment in operating capital is $8500 and then the free cash flow would be
Discuss
Answer: (a).−$4000
Q79.
The net investment in operating capital is subtracted from net operating profit after taxes to calculate
Discuss
Answer: (b).free cash flow
Q80.
The project which is started by the firm for increasing the sales is classified as
Discuss
Answer: (a).new expansion project
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