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Financial Metrics

Authored by Kak Didi

Professional Development

University

Used 3+ times

Financial Metrics
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16 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the meaning of Net Present Value (NPV)?

Total amount of future investment

Present value of all money to be received minus initial cost

Net profit after tax

Total project revenue

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If the NPV is positive, what does it mean for the project?

The project is very risky

The project will lose money

The project is profitable

The project cannot be evaluated

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does IRR (Internal Rate of Return) show?

How long the project will run

The rate that makes the NPV equal to zero

Total capital needed

Present value of project cost

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If a project’s IRR is higher than the company’s required rate of return, what does it indicate?

The project should be delayed

The project is attractive

The project is not profitable

The IRR must be recalculated

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the Payback Period measure?

Total profit from the project

Time needed to recover the investment

Residual value of the asset

Project IRR

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The Time Value of Money (TVM) means:

Future money is more valuable

Money has no time value

Money today is more valuable

Money value is always constant

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are mutually exclusive projects?

Projects that must run together

Projects that can’t be compared

Projects where choosing one means rejecting the other

Projects that can be done together with limited funds

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