Question

6
Which of the following is not a scientific technique of capital budgeting?
Net Present Value of Money
Pay Back Period
ОООО
Profitability Index Method
ooks)
Internal Rate of Return

Answer 1

Answer:

please mark as branliest answer

Answer 2

profitability index methods is not a scientific technique of capital budgeting.

• there are many techniques of capital budgeting.

• capital budgeting is the process of evaluation by which different business proposal for investment can be evaluated.

• mainly there are 3 scientific techniques to be used for capital budgeting. there are as below-

1. pay back period

2. net present value i.e. NPV METHOD

3. Internal rate of return i.e. IRR METHOD

So, profitability index method is also one of capital budgeting technique but its not mainly used as all other above method.