
Introduction:
Payback Period: Payback period is the period in which the project recovers its initial cost of the investment. It can be calculated by dividing the initial investment by the annual
ARR: Accounting
The formula to calculate ARR is as follows:
NPV:
IRR:
To Choose: The methods which does not consider the investment’s profitability

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Chapter 26 Solutions
Horngren's Accounting: The Managerial Chapters (12th Edition) (loose Leaf Version)
- Matsuda Corporation planned and actually manufactured 300,000 units of its single product during its first year of operations. Variable manufacturing costs were $25 per unit of product. Planned and actual fixed manufacturing costs were $900,000, and selling and administrative costs totaled $600,000. Matsuda sold 180,000 units of product at a selling price of $38 per unit. What is Matsuda's operating income using absorption (full) costing? a) $540,000 b) $360,000 c) $450,000 d) $1,200,000arrow_forwardAnswer pleasearrow_forwardAnswer with accountingarrow_forward
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