Capital Budgeting Techniques MCQs for Competitive Exams

MCQS

Capital Budgeting Techniques MCQs for Competitive Exams

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233 MCQs Page 19

Topic Notes: Capital Budgeting Techniques

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Capital Budgeting Techniques MCQs in Commerce are useful for candidates who need targeted practice for CSS, PMS, FPSC, PPSC, NTS, entry tests, and other competitive exams in Pakistan. This topic page is designed for quick revision, repeated practice, and exam-focused preparation.

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181
If the net investment in operating capital is Rs 7,000 and the net operating profit after taxes is Rs 11,000, what is the free cash flow?
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182
Which of the following activities does not fall under the category of a capital budgeting decision?
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183
Which investment appraisal technique fails to consider the time value of money?
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184
Arrange the following stages of the capital budgeting process in their logical chronological order.
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185
What is the term for the minimum rate of return that an investor requires, considering the risk and opportunity cost of an investment?
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186
Given a free cash flow of Rs 12,000, an operating cash flow of Rs 4,000, and an investment outlay of Rs 5,000, what is the salvage cash flow?
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187
Evaluate the following statements regarding capital budgeting: 1. Payback period measures true profitability. 2. Capital rationing and budgeting are identical. 3. IRR and time-adjusted rate of return are the same. 4. Rate of return method considers time value of money.
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188
Within the scope of financial management, which category does capital budgeting fall under?
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189
In the context of capital budgeting, what does the concept of risk imply regarding the decision-maker's knowledge of future cash flows?
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190
Which term best describes the aggregate sum of all discounted future cash flows associated with a project?
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