appropriate option (i) The rate of return method does not take care of timings of returns. (ii) Simple Payback method does not consider time value of money.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16MC: When using the NPV method for a particular investment decision, if the present value of all cash...
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Read the following statements w.r.t. investment
appraisal techniques and identify the most
appropriate option (i) The rate of return method
does not take care of timings of returns. (ii)
Simple Payback method does not consider time
value of money.
Select one:
a. Both statements are correct
O b. First statement alone is correct
c. Second statement alone is correct
d. Both statements are wrong
Transcribed Image Text:Read the following statements w.r.t. investment appraisal techniques and identify the most appropriate option (i) The rate of return method does not take care of timings of returns. (ii) Simple Payback method does not consider time value of money. Select one: a. Both statements are correct O b. First statement alone is correct c. Second statement alone is correct d. Both statements are wrong
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