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Match the following methods of capital budgeting with respective formulas Method...

This question belongs to Commerce Miscellaneous In Commerce
Miscellaneous in Commerce
?

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
Choose the correct option from those given below

Answer & Solution
Correct Answer: Option B
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