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11. Ratio analysis is frequently used to analyse financial statements. Using appropriate examples, explain several limitations of using ratio analysis to assess the financial performance

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11. Ratio analysis is frequently used to analyse financial statements. Using appropriate examples, explain several limitations of using ratio analysis to assess the financial performance and position of companies. (10 marks) 12. Net present value, internal rate of return and payback period could be used in capital budgeting. Explain the merits and drawbacks of the three investment appraisal methods. (10 marks)

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