Finance Mcqs


Q.  The effect of purchasing power or inflation on present value is important because _________?

a. It increases the real value of cash flows received in the future
b. It reduces the real value of cash flows received in the future
c. It has no effect on real value of cash flow received in the future
d. None of these


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MCQs:  Ratios which relate firm’s stock to its book value per share, cash flow and earnings are classified as_________?
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MCQs:  An equation in which total assets are multiplied to profit margin is classified as_____________?
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MCQs:  In capital budgeting, term of bond which has great sensitivity to interest rates is______________?
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MCQs:  Price earning ratio and price by cash flow ratio are classified as___________?
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MCQs:  Process of comparing company results with other leading firms is considered as____________?
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MCQs:  An equity multiplier is multiplied to return on assets to calculate_________?
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MCQs:  A project whose cash flows are more than capital invested for rate of return then net present value will be___________?
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MCQs:  In mutually exclusive projects, project which is selected for comparison with others must have____________?
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MCQs:  Profitability index in capital budgeting is used for_________?
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MCQs:  Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as____________?
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MCQs:  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__________?
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MCQs:  Present value of future cash flows is divided by an initial cost of project to calculate_______?
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MCQs:  First step in calculation of net present value is to find out_________?
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MCQs:  Life that maximizes net present value of an asset is classified as__________?
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MCQs:  In capital budgeting, positive net present value results in_________________?
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MCQs:  In estimating value of cash flows, compounded future value is classified as its__________?
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MCQs:  If two independent projects having hurdle rate, then both projects should________?
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MCQs:  Cash flow which starts negative than positive then again positive cash flow is classified as__________?
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MCQs:  Cash inflows are revenues of project and are represented by__________?
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