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Commerce · Q457

Financial Management

Graduate and Post Graduate · Commerce · question 457

Q457

Projects which are mutually exclusive but different on scale of production or time of completion then the

A.
external return method
B.
net present value of method
Answer
C.
net future value method
D.
internal return method

Answer: Option B

Solution

Answer: Option B
Solution:
Projects which are mutually exclusive but different on scale of production or time of completion then the net present value of method. Net Present Value (NPV) is defined as the present value of the future net cash flows from an investment project.