Judging whether an investment project is worthwhile through numerical (financial) means, such as payback period, accounting rate of return, and net present value.

• A. Cash
• B. Quantitative Investment Appraisal
• C. Assets
• D. Sources of Finance

Answer: (B)

Evaluating whether an investment is worthwhile using numerical financial measures. This approach, quantitative investment appraisal, uses numbers—like payback period, accounting rate of return, and net present value—to assess a project’s viability. These tools quantify timing, profitability, and value, helping decide if the expected returns justify the initial outlay and the risks involved. Payback shows how quickly money is recovered, the accounting rate of return focuses on accounting profits relative to investment, and net present value accounts for the time value of money to determine overall value. In contrast, cash, assets, and sources of finance refer to resources, possessions, or funding options, not the numerical evaluation of a project's merit.