Match the following methods of capital budgeting with respective formulas:
| Method | Formulas |
| a. ARR method | 1. Present Value of Cash Inflows - Present Value of Cash Outflows |
| b. Pay back period Method | 2. Present Value of Cash Inflows ÷ Present Value of Cash Outflows |
| c. NPV Method | 3. Average Income ÷ Average Investment |
| d. Probability Index | 4. Investment ÷ Annual Cash Inflows |
A. a-3, b-1, c-4, d-2
B. a-3, b-4, c-1, d-2
C. a-1, b-2, c-3, d-4
D. a-1, b-4, c-2, d-3
Answer: Option B
This Question Belongs to Commerce >> Miscellaneous In Commerce
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