Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
Profitability index in capital budgeting is used for_________?
A: Negative projects
B: Relative projects
C: Evaluate projects
D: Earned projects
Evaluate projects
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
Direct relationship
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
3.5 years
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
Profitability index
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
Present value cash flow
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
Economic life
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
Positive economic value added
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
Terminal value
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
Be accepted
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
Non-normal cash flow