
(a)
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:
Net present value method is the method which is used to compare the initial
To compute: The cash payback period and net present value for given proposals.
(b)
To discuss: Whether the proposal is acceptable or not.

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Chapter 12 Solutions
Managerial Accounting: Tools For Business Decision Making, Seventh Edition Wileyplus Card
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