Which TWO of the following are methods used for assessing the profitability of strategic options?
A) Forecasting the return on capital employed.
B) Estimating the impact of the investment on the current ratio.
C) Estimating the impact of the investment on the gearing ratio.
D) Forecasting the value of the future returns using the discounted cash flow technique.

Question

Quizplus · Accepted Answer

Forecasting the return on capital employed and forecasting the value of future returns using the discounted cash flow technique are commonly used methods for assessing the profitability of strategic options. Estimating the impact on the current ratio and gearing ratio are important factors to consider, but they do not directly assess profitability.

Which TWO of the Following Are Methods Used for Assessing