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.
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.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question

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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