Capital Budgeting
5 practice questionsFinanceStep-by-step solutions
Try a few
1
A higher discount rate applied to a project's future cash flows generally results in a:
A.Higher NPV
B.Lower NPV
C.Unchanged NPV
D.Negative payback period
2
The payback period of an investment measures:
A.Total lifetime profit
B.The time needed to recover the initial investment
C.The tax rate
D.Annual depreciation
3
Between two mutually exclusive projects, the NPV rule says to choose the one with the:
A.Lowest NPV
B.Highest positive NPV
C.Shortest name
D.Largest initial cost
Master capital budgeting — not just preview it
All 5 questions with worked solutions, an AI tutor that explains every step, and games that make the drilling stick. Free to start.
Practice this topic freeNo card needed · 10 free AI questions daily