Day: March 1, 2021

The net present value (NPV) method of investment appraisal requires?

Select ONE answer:

1. a distinction being made between capital and revenue expenditure and income.
2. the realistic depreciation of the capital expenditure involved.
3. a knowledge of the amounts and timings of the expected net proceeds of proposed investments.
4. the calculation of the payback periods of proposed investments.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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