Strength Of material (ME2406) Capital Budgeting Quiz

Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology

Strength of material (ME2406)

1. Which of the following capital budgeting techniques takes into account the
incremental accounting income rather than cash flows:
o Net present value
o Internal rate of return
o Accounting/Simple rate of return
o Cash payback period
2. Which of the following techniques does not take into account the time value of
money?
o Internal rate of return method
o Simple cash payback method
o Net present value method
o Discounted cash payback method
3. The current worth of a sum of money to be received at a future date is called:
o real value
o future value
o present value
o salvage value
4. The difference between the present value of cash inflows and the present value
of cash outflows associated with a project is known as:
o net present value of the project
o net future value of the project
o net historical value of the project
o net salvage value of the project

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