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

This Post Has One Comment

  1. graliontorile

    Hello there, You have performed a great job. I’ll definitely digg it and in my opinion suggest to my friends. I’m sure they’ll be benefited from this website.

Leave a Reply