Q.
1
| Methods | Formula |
| a) ARR Method | i) Present value of Cash Inflows – Present value of Cash Outflow |
| b) Pay back period Method | ii) Present value of Cash Inflow ÷ Present value of Cash Outflow |
| c) NPV Method | iii) Average Income ÷ Average Investment |
| d) Probability Index | iv) Investment ÷ Annual Cash Inflows |
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A
a) – iii), b) – i), c) – iv), d) – ii)
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B
a) – iii), b) – iv), c) – i), d) – ii)
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C
a) – i), b) – ii), c) – iii), d) – iv)
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D
a) – i), b) – iv), c) – ii), d) – iii)