Sail E0 Webinar

MCQs

Cash Flow Statement

Total Questions : 118 | Page 10 of 12 pages
Question 91. The net investment in operating capital is $7000 and the net operating profit after taxes is $11,000 then the free cash flow will be
  1.    −$18000
  2.    18000
  3.    −$4000
  4.    4000
 Discuss Question
Answer: Option D. -> 4000
Answer: (d).4000
Question 92. The rate of return which is required to satisfy stockholders and debt holders is classified as
  1.    weighted average cost of interest
  2.    weighted average cost of capital
  3.    weighted average salvage value
  4.    mean cost of capital
 Discuss Question
Answer: Option B. -> weighted average cost of capital
Answer: (b).weighted average cost of capital
Question 93. An investment outlay cash flow is $2000, an operating cash flow is $1500 and the salvage cash flow is $3000 then the free cash flow would be
  1.    500
  2.    2500
  3.    0.065
  4.    6500
 Discuss Question
Answer: Option D. -> 6500
Answer: (d).6500
Question 94. The free cash flow is $15000 and the net investment in operating capital is $9000 then the net operating profit after taxes will be
  1.    24000
  2.    6000
  3.    −$6000
  4.    −$24000
 Discuss Question
Answer: Option A. -> 24000
Answer: (a).24000
Question 95. In cash flow estimation, the depreciation is considered as
  1.    cash charge
  2.    noncash charge
  3.    cash flow discounts
  4.    net salvage discount
 Discuss Question
Answer: Option B. -> noncash charge
Answer: (b).noncash charge
Question 96. The net operating profit after taxes is $4500, the net investment in operating capital is $8500 and then the free cash flow would be
  1.    −$4000
  2.    4000
  3.    −$18000
  4.    18000
 Discuss Question
Answer: Option A. -> −$4000
Answer: (a).−$4000
Question 97. The project which is started by the firm for increasing the sales is classified as
  1.    new expansion project
  2.    old expanded project
  3.    firm borrowing project
  4.    product line selection
 Discuss Question
Answer: Option A. -> new expansion project
Answer: (a).new expansion project
Question 98. The net investment in operating capital is subtracted from net operating profit after taxes to calculate
  1.    relevant inflows
  2.    free cash flow
  3.    relevant outflows
  4.    cash outlay
 Discuss Question
Answer: Option B. -> free cash flow
Answer: (b).free cash flow
Question 99. In internal rate of returns, the discount rate which forces the net present values to become zero is classified as
  1.    positive rate of return
  2.    negative rate of return
  3.    external rate of return
  4.    internal rate of return
 Discuss Question
Answer: Option D. -> internal rate of return
Answer: (d).internal rate of return
Question 100. * The projects which are mutually exclusive but different on scale of production or time of completion than the
  1.    external return method
  2.    net present value of method
  3.    net future value method
  4.    internal return method
 Discuss Question
Answer: Option B. -> net present value of method
Answer: (b).net present value of method

Latest Videos

Latest Test Papers