Q57 Which of the following statements is true about capital investment appraisal?

Q57 Which of the following statements is true about capital investment appraisal?
 Payback period does not take account of time value of money
 Net present value method uses profits as base for discounting to obtain the NPV values of the projects
 Internal rate of return is the cost of capital charged by the banks
 The discount factor used for project evaluation is the rediscount bank rate

 

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