Assertion (A) : Risk analysis of capital investment is the most complex and controversial area in finance.

Reasoning (R) : Capital investment decisions are based on estimates of future cash inflows.

  • A

    (A) is incorrect but (R) is correct.

  • B

    (A) is correct but (R) is incorrect.

  • C

    (A) and (R) both are correct and (R) is right explanation of (A).

  • D

    (A) and (R) both are correct but (R) is not right explanation of (A).