Capital investment proposals may not be evaluated by using:

Question

Quizplus · Accepted Answer

The income statement method is not an appropriate method for evaluating capital investment proposals. It only provides information on the profitability of a company and does not take into account the time value of money or the cash flow generated by the investment. The payback period, return on investment method, and discounted cash flow method are all commonly used methods for evaluating capital investment proposals.

Capital Investment Proposals May Not Be Evaluated by Using