(i) Pay Back period method measures the true profitability of a project.

(ii) Capital Rationing and Capital Budgeting mean the same thing

(iii) Internal Rate of Return and Time Adjusted Rate of Return are the same thing.

(iv) Rate of Return Method takes into account the time value of money.


  • A

    (i), (ii) and (iii) are correct     

  • B

    (ii) and (iii) are correct


  • C

    Only (iii) is correct    

  • D

    All (i), (ii), (iii) and (iv) are false