Explore topic-wise MCQs in Business Finance.

This section includes 2 Mcqs, each offering curated multiple-choice questions to sharpen your Business Finance knowledge and support exam preparation. Choose a topic below to get started.

1.

Net Present Value (NPV) and Internal Rate of Return (IRR) methods yield conflicting outcomes due to _____.(A) Unconventional cash flows(B) Investment size disparity(C) Investment life disparity(D) Cash flow pattern disparityChoose the most appropriate answer from the options given below:

A. (A) and (B) only
B. (A) and (C) only
C. (A), (B) and (C) only
D. (B), (C) and (D) only
Answer» E.
Discussion
2.

Match the following methods of capital budgeting with their respective formula: Method Formula(a) ARR method(i) Present Value of Cash inflows - Present Value of Cash Outflows(b) Pay back Period Method(ii) Present Value of Cash inflow ÷ Present Value of Cash Outflows(c) NPV Method(iii) Average Income ÷ Average Investmentd) Probability Index(iv) Investment ÷ Annual Cash Inflows Choose the correct option from those given below

A. (a) - (iii), (b) - (i), (c) - (iv), (d) - (ii)
B. (a) - (iii), (b) - (iv), (c) - (i), (d) - (ii)
C. (a) - (i), (b) - (ii), (c) - (iii), (d) - (iv)
D. (a) - (i), (b) - (iv), (c) - (ii), (d) - (iii)
Answer» C. (a) - (i), (b) - (ii), (c) - (iii), (d) - (iv)
Discussion