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Home Q & A Board Other Fields Homework Help Business Accounting
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xlynnnguyenx xlynnnguyenx
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7 years ago
A manager wants to know which investment decision will affect the bottom line of the financial statements according to Generally Accepted Accounting Principles. Which capital budgeting method would he​ choose?

A. Payback method
B. Net present value method
C. Profitability Index
D. Accounting rate of return method
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#1
7 years ago
Investments in working capital will affect the bottom line of the financial statements according to the generally accepted accounting principles. like investments in debtors would increase our investment in working capital and increase in creditors will reduce our requirement of working capital.

Capital budgeting method to be choose is best method i.e . net present value method.

But he can choose accounting rate of return method too.
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