Loose Leaf For Managerial Accounting for Managers
Loose Leaf For Managerial Accounting for Managers
6th Edition
ISBN: 9781264445394
Author: Noreen, Eric, BREWER, Peter, Garrison, Ray
Publisher: McGraw Hill
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Chapter 7, Problem 7.13E
To determine

Concept Introduction:

Net present value: It is the net inflow from the project which is calculated after considering the taxes and present value factor. It is calculated by reducing the net cash outflow from the net cash inflow. NPV helps in decision making regarding a project.

Payback period is period in which company get back the amount which is invested by them into the project. This method also helps company to take decision related to the accepting or rejecting the order.

Requirement-1:

To Calculate:

Payback period of the project.

To determine

Concept Introduction:

Net present value: It is the net inflow from the project which is calculated after considering the taxes and present value factor. It is calculated by reducing the net cash outflow from the net cash inflow. NPV helps in decision making regarding a project.

Payback period is period in which company get back the amount which is invested by them into the project. This method also helps company to take decision related to the accepting or rejecting the order.

Requirement-2:

To Calculate:

Simple rate of return promised by the offer.

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