MANGERIAL ACC.(LOOSE)W/CONNECT CUST.>IC
MANGERIAL ACC.(LOOSE)W/CONNECT CUST.>IC
16th Edition
ISBN: 9781260636864
Author: Garrison
Publisher: MCG CUSTOM
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Chapter 13, Problem 14F15
To determine

Payback period:

It refers to the time length that is needed in order to recover the investment cost. The project that have long payback period should not be undertaken by the company. This is an important determinant which tells the company whether to undertake the project or not. It is computed by the following formula:

  Pay-back period=Initial Investmentcash flows

Payback period when variable expenses changed to 45%.

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MANGERIAL ACC.(LOOSE)W/CONNECT CUST.>IC

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