alleryStart learning →Under the chain method, a 3 year and a 4 year project are compared over how many years?
A24 years
B10 years
C12 years
D7 years
Answer & Solution
Correct answer: C. 12 years
Four repetitions of the 3 year project and three repetitions of the 4 year project each span 12 years.
Keep practising Capital Budgeting
Browse all Capital Budgeting questions for CA Inter, or explore more Financial Management topics.
Related questions
Under which cash flow statement section is capex commonly reported?Which spending is capital expenditure as it extends asset life?Which of these spending items is a capital expenditure?Where do capitalised expenditures show up in the financial statements?Which expense is the counterpart of capital expenditure?What is capital expenditure (capex)?Payback also ignores which part of a project's cash flows?Which key weakness does the simple payback period have?