Concept explainers
a)
To determine:
Payback period of each project.
Introduction:
Every investment requires a time period to pay back the cost of investment. The time period taken to recover the cost of an investment is known as the payback period.
b)
To determine:
The
Introduction:
The difference between the present value of cash inflows and the present value of
c)
To determine:
Recommendations of the projects.
Introduction:
Every investment requires a time period to pay back the cost of investment. The time period taken to recover the cost of an investment is known as the payback period. The difference between the present value of cash inflows and the present value of cash outflows over a period of time is known as the Net Present value.
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