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Management · Q501

Financial Management

Graduate and Post Graduate · Management · question 501

Q501

Net present value, profitability index, payback and discounted payback are methods to

A.
evaluate cash flow
B.
evaluate projects
Answer
C.
evaluate budgeting
D.
evaluate equity

Answer: Option B

Solution

Answer: Option B
Solution:
Net present value, profitability index, payback and discounted payback are methods to evaluate projects. The most frequently mentioned and described static methods of investment projects evaluation include: The payback period. Account of comparative costs. Account of comparative profit. Account of comparative profitability. The average rate of return on investment. Test of the first year.