Accounting · Financial Management
Which of the following statements about investment appraisal methods is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The return on capital employed method considers the time value of money
- 2Return on capital employed must be greater than the cost of equity if a project is to be accepted
- 3Riskier projects should be evaluated with longer payback periods
- 4The payback period method ignores the timing of cash flows within the payback period✓
Correct answer
The payback period method ignores the timing of cash flows within the payback period
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