1 (a)
NPV is a technique used in capital budgeting to see the project is profitable for the company or not. The acceptance of the project is based on the result of NPV as if it is positive then it should be selected and in the case of negative NPV it should be rejected.
Payback period:
It is ascertained when cost of project is divided by the annual
IRR is a capital budgeting technique that involves the time value of money concept. The IRR percentage gives the idea about the profitability arises from an investment. The IRR of a project is calculated with the help of NPV calculations.
To compute: The NPV.
1 (b)
To compute: Payback period.
1 (c)
To compute: The IRR
2.
To compute: The accrual accounting
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Chapter 21 Solutions
Cost Accounting (15th Edition)
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Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
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