A. evaluate cash flow

**B. evaluate projects**

C. evaluate budgeting

D. evaluate equity

# Finance Mcqs

## A type of project whose cash flows would not depend on each other is classified as …………?

A. project net gain

**B. independent projects**

C. dependent projects

D. net value projects

## The project whose cash flows are less than the capital invested for required rate of return then the net present value will be ………..?

**A. negative**

B. zero

C. positive

D. independent

## The present value of future cash flows is $4150 and an initial cost is $1300 then the profitability index will be …………?

**A. 0.0319**

B. 3.19

C. 0.31 times

D. 5450

## The cash inflows are the revenues of project and are represented by ………..?

A. hurdle number

B. relative number

C. negative numbers

**D. positive numbers**

## In large expansion programs, the increased riskiness and the floatation cost associated with project can cause ………..?

**A. rise in marginal cost of capital**

B. fall in marginal cost of capital

C. rise in transaction cost of capital

D. rise in transaction cost of capital

## An initial cost is $6000 and the probability index is 5.6 then the present value of cash flows will be ……….?

A. 25000

B. 28000

**C. 33600**

D. 30000

## An increase in marginal cost of capital and the capital rationing are two arising complications of ……….?

A. maximum capital budget

B. greater capital budget

**C. optimal capital budget**

D. minimum capital budget

## In capital budgeting, a technique which is based upon discounted cash flow is classified as ………..?

**A. net present value method**

B. net future value method

C. net capital budgeting method

D. net equity budgeting method

## In estimating value of cash flows, the compounded future value is classified as its ………?

**A. terminal value**

B. existed value

C. quit value

D. relative value