GENERAL KNOWLEDGE

GK

ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which is the method of Capital budgeting?
A
Rate of Return Method
B
Pay back period Method
C
Net Present Value Method
D
All of the above
Explanation: 

Detailed explanation-1: -The major methods of capital budgeting include discounted cash flow, payback, and throughput analyses.

Detailed explanation-2: -Capital budgeting decisions are based on comparison of a project’s initial investment outlay to the future incremental cash flows of the project and its terminal cash flow. Was this answer helpful?

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