A) What are disadvantages of Payback Period method used in capital budgeting?    B) A project has an initial cost of $1000 and $450 cash inflow each year for 4 years with a discount rate of 10%. What is its payback period? What is its discounted payback period?

Q: A                  B                       C      Initial investment…

A: Net present value is one of the methods of capital budgeting  where projects net present value is…

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A: Data given: Year Project A ($) Project B ($) 0 -6000 -18000 1 2000 5600 2 2000 5600 3…

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A:

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A: Payback period is the no. of years required to recover the initial amount invested.

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A: Calculation of payback period for three projects: Excel workings:

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Q: YOUR UNDERSFANDING Directions: Evaluate the following projects. Which is the best among them using…

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A: Answer) Calculation of Payback period Year  Annual cash flow Cumulative cash flow 0…

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A: Given:

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Q: An investment project provides cash inflows of $1,100 per year for eight years.     a. What is the…

A: Payback period is a technique used in Capital budgeting to calculate the time taken by an investment…

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A: Net Present Value is the difference between the present value of cash inflows and cash outflows.

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A: Discounted Payback Period (DPP) = Previous year DPP Occurs + Cumulative Cash flow till…

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A:

Q: A project has the following cash flows. What is the payback period?   Year Cash Flow 0…

A: The payback period is firmly identified with the earn back the original investment point of any…

Q: With an initial cost of $100,000, a WACC of 15%, and subsequent cash flows for years 1, 2, 3 of…

A: Payback Period = Years before full recovery + (unrecovered cost at the start of the year/ cashflow…

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A: Excel Spreadsheet: Excel Workings:

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A: Formulas:

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A: Dear student please re-post the question for remaining part's solution.because we can solve only…

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A: Payback period is that the time that's required to recover the value of an investment in way of cash…

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.