Statement I: In case of capital rationing, a company is compelled to invest in projects having shortest
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Question:
Statement I:
In case of capital rationing, a company is compelled to invest in projects having shortest payback period.
Statement II:
The shorter the payback period, the less risky is the project. Therefore, it can be considered as an indicator of risk.
Select the correct answer from the options given below:
(A) Statement I is true but Statement II is false.
(B) Statement II is true but Statement I: is false.
(C) Both Statement I and Statement II are false.
(D) Both Statement I and Statement II are true.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: