1.
Concept Introduction:
Payback period is the period in which the company gets back the amount that is invested by them into the project. This method also helps the company to take decision-related to accepting or rejecting the order.
To Calculate: Payback period of the project.
2.
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 the period in which the company gets back the amount that is invested by them into the project. This method also helps the company to take decision-related to accepting or rejecting the order.
To Calculate: Simple
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Chapter 7 Solutions
MANAGERIAL ACCT. F/MANAGERS (LL)-W/ACCES
- Aspire Enterprises produces two products, GR and HT, from a joint production process. Product IF has been allocated $18,500 of the total joint costs of $41,000. A total of 3,500 units of Product IF were produced. Product IF can be sold at the split-off point for $14 per unit, or it can be further processed at an additional cost of $12,200 and then sold for $18 per unit. How would the company's overall profit change if product IF is processed further instead of being sold immediately at the split-off point? a. $1,800 more profit b. $8,200 less profit c. $12,200 less profit d. $5,300 more profitarrow_forwardWhat is the dividend payout ratio of this financial accounting question?arrow_forwardWhat is the gross profit margin?arrow_forward
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