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Consider the following statements 1 Payback period method measures the true...

This question belongs to Commerce Business Finance
Business Finance
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Consider the following statements.
1. Payback period method measures the true profitability of a project.
2. Capital rationing and capital budgeting mean the same thing.
3. Internal rate of return and time adjusted rate of return mean the same thing.
4. Rate of return method takes into account the time value of money.
Which of the statement(s) given above is/are correct?

Answer & Solution
Correct Answer: Option B
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