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Commerce Miscellaneous In Commerce Difficulty: Medium

Match the following methods of capital budgeting with respective formulas: Method Formulas a. ARR method 1. Present Value of Cash Inflows - Present Value of Cash Outflows b. Pay back period Method 2. Present Value of Cash Inflows ÷ Present Value of Cash Outflows c. NPV Method 3. Average Income ÷ Average Investment d. Probability Index 4. Investment ÷ Annual Cash Inflows Choose the correct option from those given below

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