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Examveda

Which of the following statements are true?
1. Pay-back period method considers all cash flows of a project
2. Pay-back period method concerns more with the recovery of cost than profitability
3. Net Present Value represents net addition to the wealth of shareholders
4. Accounting Rate of Return method incorporates risk as well as time value of money
Choose the correct option from those below:

A. 1 and 2

B. 1 and 4

C. 2 and 3

D. 2 and 4

Answer: Option C


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