Management Sciences MCQs
These Management Sciences MCQs are for public service commission exams and BBA, and MBA students to prepare for their examinations. All MCQs are prepared after having a look at past papers of public service commission examinations held from time to time. These Management Science questions are very important for all types of tests conducted by FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, STS, ETEA, and other testing agencies of Pakistan.
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
Cash inflows are revenues of project and are represented by__________?
A: Hurdle number
B: Relative number
C: Negative numbers
D: Positive numbers
Positive numbers
Net present value, profitability index, payback and discounted payback are methods to______________?
A: Evaluate cash flow
B: Evaluate projects
C: Evaluate budgeting
D: Evaluate equity
Evaluate projects
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
Independent projects