epp Corporation is considering two projects of machinery that perform the same task. The required rate of return for these projects is RM12%. The projects’ expected cash flows are as follows: YearMachine MIR (RM)Machine ZA (RM)0(37,000)(37,000)113,00016,500215,00015,500322,00020,000417,00019,500 Based on the above information, you are required to make an analysis for the decision of Capital Budgeting based on the following techniques: 1、Payback Period…2、Discounted Payback Period…3、Net Present Value (NPV) …4、Accounting Rate of Return…5、Internal Rate of Return……6、Profitability Index, PI……

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...

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epp Corporation is considering two projects of machinery that perform the same task. The required rate of return for these projects is RM12%. The projects’ expected cash flows are as follows:

Year	Machine MIR (RM)	Machine ZA (RM)
0	(37,000)	(37,000)
1	13,000	16,500
2	15,000	15,500
3	22,000	20,000
4	17,000	19,500

Based on the above information, you are required to make an analysis for the decision of Capital Budgeting based on the following techniques:

1、Payback Period…

2、Discounted Payback Period…

3、Net Present Value (NPV) …

4、Accounting Rate of Return…
5、Internal Rate of Return……

6、Profitability Index, PI……

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