Question

Which of the following capital budgeting techniques consider the cost of capital?

(1) Net Present Value

(2) Internal Rate of Return

(3) Profitability Index

(4) Payback Period

(5) Discounted Payback Period

Options:

1) and (2)
	(1)
	(1) and (2) and (3)
	(1) and (2) and (3) and (5)

Answer 1

The techniques that consider the cost of capital are:-

(1) Net Present Value

(2) Internal Rate of Return

(3) Profitability Index

(5) Discounted Payback Period

The correct answer is:-

d.. (1) and (2) and (3) and (5)