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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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