Concept Introduction:
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:
Net present value of the project.
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
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 Indicate:
Accept the offer or reject it.
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Chapter 7 Solutions
Managerial Accounting for Managers
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