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Commerce · Q234

Business Finance

Graduate and Post Graduate · Commerce · question 234

Q234

Examine the following statements. (i) Payback Period Method measures the true profitability of a project. (ii) Capital Rationing and Capital Budgeting mean the same. (iii) Internal Rate of Return and Time Adjusted Rate of Return are the same. (iv) Rate of Return Method takes into account the time value of money.

A.
(i), (ii) and (iii) are correct
B.
(ii) and (iii) are correct
C.
Only (iii) is correct
Answer
D.
All (i), (ii), (iii) and (iv) are false

Answer: Option C

Solution

Answer: Option C
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