Start learning →

Which of these is a formal method used in capital budgeting?

AThe current liquidity ratio
BThe debtors turnover ratio
CThe profitability index
DThe gross profit margin
Answer & Solution
Correct answer: C. The profitability index
The profitability index is one of the listed capital budgeting techniques, alongside NPV, IRR and payback.
Practise this question with Quill — CA Inter →

Keep practising Capital Budgeting

Browse all Capital Budgeting questions for CA Inter, or explore more Financial Management topics.

Start a Capital Budgeting lesson →
Related questions