Which of the Following Statements Considering Investment Appraisal Methods Are

question 24

Multiple Choice

Which of the following statements considering investment appraisal methods are correct?
(i) Payback Period is based on Cashflow,not profits
(ii) ARR is based on cashflow,not profits
(iii) Discounted Cashflow includes the Time Value of Money in the calculation

• A) They are all correct
• B) (i) is false. (ii) and (iii) are correct
• C) (i) and (iii) are correct. (ii) is false
• D) They are all false

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Definitions:

Threat

Any circumstance or event with the potential to cause harm to a system, organization, individual, or property.

Buyer Power

The influence that customers have over a company, including their ability to drive prices down or demand higher quality products and services.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or use in production or operations.

Choices

The range of different options or decisions available to an individual or organization.