**411. Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as____________?**

A. Valued relationship

B. Economic relationship

**C. Direct relationship**

D. Inverse relationship

**412. 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__________?**

A. 5 years

**B. 3.5 years**

C. 4 years

D. 4.5 years

**413. Present value of future cash flows is divided by an initial cost of project to calculate_______?**

A. Negative index

B. Exchange index

C. Project index

**D. Profitability index**

**414. First step in calculation of net present value is to find out_________?**

A. Present value of equity

B. Future value of equity

**C. Present value cash flow**

D. Future value of cash flow

**415. Life that maximizes net present value of an asset is classified as__________?**

A. Minimum life

B. Present value life

**C. Economic life**

D. Transaction life

**416. In capital budgeting, positive net present value results in_________________?**

A. Negative economic value added

**B. Positive economic value added**

C. Zero economic value added

D. Percent economic value added

**417. In estimating value of cash flows, compounded future value is classified as its__________?**

**A. Terminal value**

B. Existed value

C. Quit value

D. Relative value

**418. If two independent projects having hurdle rate, then both projects should________?**

**A. Be accepted**

B. Not be accepted

C. Have capital acceptance

D. Have return rate acceptance

**419. Cash flow which starts negative than positive then again positive cash flow is classified as__________?**

A. Normal costs

B. Non-normal costs

**C. Non-normal cash flow**

D. Normal cash flow

**420. Cash inflows are revenues of project and are represented by__________?**

A. Hurdle number

B. Relative number

C. Negative numbers

**D. Positive numbers**

**NOTE IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG. PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX. THANK YOU **

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