UGC NET Capital budgeting Previous Year Questions
JRFSmart holds 34 previous-year questions on Capital budgeting from UGC NET Commerce (Paper 2), filed under Unit 4: Business Finance, drawn from 20 of the 22 exam papers in the bank (2018–2025). Each question can be practised with a full explanation and shows how often NTA has returned to the same idea.
What is asked in Capital budgeting
The questions in this topic fall under these subtopics, ordered by how many previous-year questions each has.
| Subtopic | Questions |
|---|---|
| Internal rate of return | 3 |
| Capital budgeting techniques defined | 2 |
| IRR reinvestment assumption | 1 |
| Profitability index | 1 |
| NPV versus IRR conflicts | 1 |
| Payback, NPV and ARR | 1 |
| When to use the payback period | 1 |
| NPV versus IRR conflict | 1 |
| Multinational capital budgeting and political risk | 1 |
| Capital budgeting process | 1 |
| Accounting rate of return | 1 |
| Stages of capital budgeting | 1 |
NTA repeat analysis
Capital budgeting appears in 20 of 22 papers (91%), which JRFSmart rates as high frequency.
Sample previous-year questions
Arrange the following steps in logical sequence regarding how to compute Net Present Value (NPV). A. Calculate Net Present Value (NPV) i.e. Present Value of all cash inflows - present value of all cash outflows B. Calculate all the cash outflows associated…
A proposal requires a cash outflow of Rs.18,500 and is expected to generate cash inflows of Rs.8,000, Rs.6,000, Rs.4,000, Rs.2,000 and Rs.2,000 over next 5 years respectively. The payback period is
Which of the following are the discounted cash flow techniques of capital budgeting? A. Payback Period B. Accounting rate of return (ARR) C. Net Percent Value (NPV) D. Internal Rate of Return (IRR) E. Profitability Index Choose the correct answer from the…
Arrange the following steps of Multinational Capital Budgeting in correct order A. Estimate net cash flow from the project B. Determine net investment outlay C. Apply appropriate evaluation technique D. Identify appropriate discount rate Choose the correct…
Arrange the following steps of Capital Budgeting Process in correct order : A. Preliminary Screening Process B. Project Generation C. Detailed Project Evaluation D. Control of Capital Expenditure E. Project Selection and its implementation Choose the correct…
Match List - I with List - II. LIST I | LIST II A. NPV | I. Which equates the aggregate present value of the net cash Inflows with the aggregate present value of cash outflows. B. IRR | II. Dividing the average annual profit after tax by average investment…
Arrange the phases of capital expenditure/Investment planning and control from beginning to end. A. Evaluation of the net benefits B. Identification of Investment opportunities. C. Development of forecasts of benefits and costs. D. Authorization for…
Which of the following are merits of NPV method of capital budgeting? A. Considers all cash flows. B. Consider the time value of money. C. Give more weightage to future receipt. D. Satisfies the value additivity principle. E. No relation with the wealth…
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Practise Capital budgeting
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