Q. In independent projects, accept a project if it’s NPV is………………………..
✅ Correct Answer: (D)
positive
Entrepreneurship Development MCQs and Notes
Q. In case of mutually exclusive projects, the project with ……………. PI is to be selected.
✅ Correct Answer: (A)
higher
Q. The excess of the present value over the cost of the project is ……………………..
✅ Correct Answer: (D)
ntv
Q. The process of measuring the progress and performance of a project is called:
✅ Correct Answer: (B)
project evaluation.
Q. For discounted cash flow methods, the discount rate used is:
✅ Correct Answer: (C)
equivalent to firm’s average cost of capital.
Q. Profitability index shows benefits from the proposal in :
✅ Correct Answer: (B)
relative terms.
Q. The scientific technique of evaluation of capital expenditure decisions include the following except:
✅ Correct Answer: (D)
payback period.
Q. The difference between the total present value of a stream of cash flows of a given rate of discount and the initial capital outlay is known as the :
✅ Correct Answer: (C)
npv.
Q. Which one of the following is not a discounted cash flow technique:
✅ Correct Answer: (A)
arr
Q. The discount rate must be determined in advance for the :
✅ Correct Answer: (D)
npv method.