The Payback Period (PBP) will always select the investment that
Investment Appraisal Techniques

Quiz
•
Business
•
University
•
Hard

Sandeep Singh Sikerwar
Used 42+ times
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
Gives the highest rate of return
Returns the cost of investment first
Has the highest total net cash flow
2.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
Which of the following is NOT relevant to the use of the NPV method of investment appraisal?
It relies on discounted cash flows
It’s expressed as a percentage for easier comparison
Its value will fall if interest rates rise
A financially viable investment has a positive value
3.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
Which TERM refers to the numerical value needed to calculate the NPV of an investment?
Ratio
Net cash flow
Discounted cash flows
Discount factor
4.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
The initial investment is £5,000. In the first year the firm paid back £1,000 in the second year £2,000 and the third year 3,000. The payback period for the investment is:
2 years
3 years
3 years 4 months
2 years 8 months
5.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
The following are all methods of investment appraisal, EXCEPT:
Payback period
Balance sheet return
Net present value
Discounted Payback period
6.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
NPV will be positive if
Companies work hard
Discounted cash flows justify initial investment
Money is given back
They won't be
7.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
The amount of time taken to generate sufficient cash to cover its own investment costs is called ...
Return period
Payback period
Depreciation period
Investment period
Create a free account and access millions of resources
Similar Resources on Wayground
5 questions
FIN 302 Fall 24 - Quiz #3 (11/12)

Quiz
•
University
7 questions
Pengantar Matrikulasi

Quiz
•
University
10 questions
Reclass and Investment Property Review

Quiz
•
University
10 questions
TOPIC 3 - MCQ

Quiz
•
University
11 questions
Accounting Principles & Accounting Equation

Quiz
•
11th Grade - University
10 questions
Finance & Accounts

Quiz
•
10th Grade - University
15 questions
Corporate finance: Capital Budgeting

Quiz
•
University
13 questions
Capital Budgeting

Quiz
•
University
Popular Resources on Wayground
25 questions
Equations of Circles

Quiz
•
10th - 11th Grade
30 questions
Week 5 Memory Builder 1 (Multiplication and Division Facts)

Quiz
•
9th Grade
33 questions
Unit 3 Summative - Summer School: Immune System

Quiz
•
10th Grade
10 questions
Writing and Identifying Ratios Practice

Quiz
•
5th - 6th Grade
36 questions
Prime and Composite Numbers

Quiz
•
5th Grade
14 questions
Exterior and Interior angles of Polygons

Quiz
•
8th Grade
37 questions
Camp Re-cap Week 1 (no regression)

Quiz
•
9th - 12th Grade
46 questions
Biology Semester 1 Review

Quiz
•
10th Grade