MANAGERIAL ACCT(LL)+CONNECT+PROCTORIO PL
MANAGERIAL ACCT(LL)+CONNECT+PROCTORIO PL
17th Edition
ISBN: 9781265574826
Author: Garrison
Publisher: MCG
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Chapter 14, Problem 10F15
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

The project’s payback period to be higher than, lower than or the same?

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