Cash payback method: Cash payback period is the expected time period which is required to recover the cost of investment. It is one of the capital investment method used by the management to evaluate the long-term investment (fixed assets) of the business. In simple, the cash payback period is computed as follows: Cash payback period = Cost of capital investment Net annual cash inflow To compute: The cash payback period for given data.

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Answer 1

Question

Chapter 12, Problem 12.1BE

To determine

Cash payback method:

Cash payback period is the expected time period which is required to recover the cost of investment. It is one of the capital investment method used by the management to evaluate the long-term investment (fixed assets) of the business.

In simple, the cash payback period is computed as follows:

Cash payback period =Cost of capital investmentNet annual cash inflow

To compute: The cash payback period for given data.

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Answer 2

Question

Chapter 12, Problem 12.1BE

To determine

Cash payback method:

Cash payback period is the expected time period which is required to recover the cost of investment. It is one of the capital investment method used by the management to evaluate the long-term investment (fixed assets) of the business.

In simple, the cash payback period is computed as follows:

Cash payback period =Cost of capital investmentNet annual cash inflow

To compute: The cash payback period for given data.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 12, Problem 12.1BE

To determine

Cash payback method:

Cash payback period is the expected time period which is required to recover the cost of investment. It is one of the capital investment method used by the management to evaluate the long-term investment (fixed assets) of the business.

In simple, the cash payback period is computed as follows:

Cash payback period =Cost of capital investmentNet annual cash inflow

To compute: The cash payback period for given data.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 12.1BE

To determine

Cash payback method:

Cash payback period is the expected time period which is required to recover the cost of investment. It is one of the capital investment method used by the management to evaluate the long-term investment (fixed assets) of the business.

In simple, the cash payback period is computed as follows:

Cash payback period =Cost of capital investmentNet annual cash inflow

To compute: The cash payback period for given data.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 12.1BE

To determine

Cash payback method:

Cash payback period is the expected time period which is required to recover the cost of investment. It is one of the capital investment method used by the management to evaluate the long-term investment (fixed assets) of the business.

In simple, the cash payback period is computed as follows:

Cash payback period =Cost of capital investmentNet annual cash inflow

To compute: The cash payback period for given data.

Answer 6

Chapter 12, Problem 12.1BE

To determine

Cash payback method:

Cash payback period is the expected time period which is required to recover the cost of investment. It is one of the capital investment method used by the management to evaluate the long-term investment (fixed assets) of the business.

In simple, the cash payback period is computed as follows:

Cash payback period =Cost of capital investmentNet annual cash inflow

To compute: The cash payback period for given data.

Answer 7

Chapter 12, Problem 12.1BE

To determine

Cash payback method:

Cash payback period is the expected time period which is required to recover the cost of investment. It is one of the capital investment method used by the management to evaluate the long-term investment (fixed assets) of the business.

In simple, the cash payback period is computed as follows:

Cash payback period =Cost of capital investmentNet annual cash inflow

To compute: The cash payback period for given data.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 12 - Prob. 1Q Ch. 12 - Prob. 2Q Ch. 12 - Tom Wells claims the formula for the cash payback...Ch. 12 - Prob. 4Q Ch. 12 - What is the decision rule under the net present...Ch. 12 - Discuss the factors that determine the appropriate...Ch. 12 - What simplifying assumptions were made in the...Ch. 12 - What are some examples of potential intangible...Ch. 12 - What steps can be taken to incorporate intangible...Ch. 12 - Prob. 10Q

Solution Summary: The author explains that cash payback period is the expected time period which is required to recover the cost of investment. It is one of the capital investment method used by the management to evaluate the long-term investment (fixed assets).

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Chapter 12 Solutions