MCQ Collection
Financial Cost Management MCQs
Practice Financial Cost Management questions with answers and explanations.
Correct Answer: 1091.51
Explanation:
PV=1300/(1+0.06)^3=1091.51.
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Correct Answer: D. 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.
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Correct Answer: B. 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.
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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.