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29. Which one of the following statements is correct regarding capital Investment appraisal methods? a) The Payback period takes into account all the cash flows accruing to the project b) The Net Present value method does not take the time value of money into account c) The Accounting Rate of Return takes the time value of cash flows into consideration and is the one most often used in practice by business organisations d) The Internal Rate of Return is the discount rate at which the net present value is zero

29. Which one of the following statements is correct regarding capital Investment appraisal methods? a) The Payback period takes into account all the cash flows accruing to the project b) The Net Present value method does not take the time value of money into account c) The Accounting Rate of Return takes the time value of cash flows into consideration and is the one most often used in practice by business organisations d) The Internal Rate of Return is the discount rate at which the net present value is zero

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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29. Which one of the following statements is correct regarding capital
Investment appraisal methods?
a) The Payback period takes into account all the cash flows accruing to the
project
b) The Net Present value method does not take the time value of money into
account
c) The Accounting Rate of Return takes the time value of cash flows into
consideration and is the one most often used in practice by business
organisations
d) The Internal Rate of Return is the discount rate at which the net
present value is zero

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