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Questionnaire on Cash Flow and Economic Indicators for IMD
Answers 1)b. 2)a. 3)d. ) b. !) b. ") a. #) c. $) c. %) d. 1&) c.
1) 'hich of the followin( is not an economic indicator
A) Net Present value*) Economic +ent
C) Internal Rate of ReturnD) Payback Period
2) ,um of the -resent alues of the annual net cash flow is
the
a) /0 /et 0resent alue)
b) NCF (Net Cash Flow)c) Net Capital !penditured) a) and c) both
3) In the 0resent alue Formula
0 Fn 4 15r)n
15r)n is 6nown as
A) Discount Rate") No# of yearsC) Future value of a pay$entD) Discount Factor
) 7he /0 8888888888888888 when discount rate increases
A) Increases*) Decreases
C) Re$ains sa$eD) Is unaffected
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!) 'hen /0 9 12: discountin( is ;,< 1&& MM=it means -ro>ect earns
A) %&' rate of return*) ;, < 1&& MM< 5 12:
C) * + &,, --+ . &'D) * + &,, --
") If the -ro>ect start is dela?ed
a) /0 will decrease
b) NP/ will increasec) NP/ will not be affectedd) None of the above
#) I++ is
a) 0he discount rate for which all discounted ne1ativecash flows are $ore than all discounted positive cashflows
b) 0he discount rate for which all discounted ne1ativecash flows are less than all discounted positive cashflows
c) 7he discount rate at which the /0 becomes @ero
d) None of the above
$) A discounted cash flow is
a) A cash flow ad2usted for the ti$e value of $oney b) A for$ of present value analysis
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c) *oth a) and b)
d) None of the above
%) 7a6es time into account
a) IRR b) NP/c) Pay 3ut Periodd) All of aboe
1&) A t?-ical net cash flow loo6s li6e followin(= the
2nd
-hase of ne(atie cash flow at the end of-ro>ect life is due to
a) Capital !penditure b) 3peratin1 !penditurec) Abandonment cost
d) All of the above
/et Cash
Flow
4
.
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