MCQ Collection
Financial Cost Management MCQs
Practice Financial Cost Management questions with answers and explanations.
Choose an option to check your answer.
Correct Answer: A. A positive NPV indicates value above the required return under the stated assumptions
Explanation:
NPV discounts incremental cash flows at the required rate and measures value created.
Correct Answer: 2947.85
Explanation:
PV=3250/(1+0.05)^2=2947.85.
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Correct Answer: B. A future cash flow is discounted because money available earlier can earn a return
Explanation:
Present value converts future cash flows using a required return that reflects time and risk.
Correct Answer: 2641.51
Explanation:
PV=2800/(1+0.06)^1=2641.51.
Choose an option to check your answer.
Correct Answer: A. A future cash flow is discounted because money available earlier can earn a return
Explanation:
Present value converts future cash flows using a required return that reflects time and risk.
Choose an option to check your answer.
Correct Answer: D. A positive NPV indicates value above the required return under the stated assumptions
Explanation:
NPV discounts incremental cash flows at the required rate and measures value created.
Correct Answer: 2271.95
Explanation:
PV=2650/(1+0.08)^2=2271.95.
Choose an option to check your answer.
Correct Answer: A. A future cash flow is discounted because money available earlier can earn a return
Explanation:
Present value converts future cash flows using a required return that reflects time and risk.
Choose an option to check your answer.
Correct Answer: D. A positive NPV indicates value above the required return under the stated assumptions
Explanation:
NPV discounts incremental cash flows at the required rate and measures value created.
Choose an option to check your answer.
Correct Answer: C. A future cash flow is discounted because money available earlier can earn a return
Explanation:
Present value converts future cash flows using a required return that reflects time and risk.
Choose an option to check your answer.
Correct Answer: A. A positive NPV indicates value above the required return under the stated assumptions
Explanation:
NPV discounts incremental cash flows at the required rate and measures value created.
Correct Answer: 1792.8
Explanation:
PV=2350/(1+0.07)^4=1792.80.
