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The lesson lists tools of analysis that underpin investment decisions. Which combination of tools is listed in the lesson as the relevant set for investment decision criteria?
Answer & Solution
Correct answer: C.
1. The lesson lists tools of analysis for investment decisions.
2. The set includes pay back period.
3. It also includes accounting rate of return.
4. Discounted cash flow methods such as net present value also feature.
5. The other lists are gross-margin, valuation or working-capital metrics, not investment-criterion tools.
_Source: ICSI CS Executive Paper 8 (Financial and Strategic Management) — Lesson 1: Nature, Significance and Scope of Financial Management, pp. 6-20._
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