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: Payback period of the project.

Question

Please explain this financial accounting problem by applying valid financial principles.

Answer 1

Question

Chapter 8, Problem 8.8E

1.

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 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.

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 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 rate of return promised by the offer.

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Please explain this financial accounting problem by applying valid financial principles.

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Answer 2

Question

Chapter 8, Problem 8.8E

1.

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 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.

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 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 rate of return promised by the offer.

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Answer 3

Question

Chapter 8, Problem 8.8E

1.

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 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.

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 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 rate of return promised by the offer.

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Answer 4

Question

Chapter 8, Problem 8.8E

1.

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 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.

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 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 rate of return promised by the offer.

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Answer 5

Chapter 8, Problem 8.8E

1.

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 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.

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 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 rate of return promised by the offer.

Answer 6

Chapter 8, Problem 8.8E

1.

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 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.

Answer 7

Chapter 8, Problem 8.8E

1.

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 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.

Answer 8

2.

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 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 rate of return promised by the offer.

Answer 9

2.

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 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 rate of return promised by the offer.

Answer 10

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Ch. 8 - Prob. 8.1Q Ch. 8 - Prob. 8.2Q Ch. 8 - Prob. 8.3Q Ch. 8 - Prob. 8.4Q Ch. 8 - Prob. 8.5Q Ch. 8 - Prob. 8.6Q Ch. 8 - Prob. 8.7Q Ch. 8 - Prob. 8.8Q Ch. 8 - Prob. 8.9Q Ch. 8 - Prob. 8.10Q

Chapter 8 Solutions