YOUR UNDARSIANDING Directions: Evaluate the following projects. Which is the best among them using the different tools in capital budgeting? Use the following tools to make your Project Cash outlay A...


Don't Answer the Payback Period since its already been answered


YOUR<br>UNDARSIANDING<br>Directions: Evaluate the following projects. Which is the best among them using the different<br>tools in capital budgeting?<br>Use the following tools to make your<br>Project<br>Cash outlay<br>A<br>В<br>P920,000<br>decisions:<br>P1,000,000<br>310,000<br>P880,000<br>1. Payback period<br>2. Net present value<br>3. Accounting rate of return<br>4. Profitability index<br>Net Cash inflow Year 1<br>200,000<br>290,000<br>Year 2<br>310,000<br>220,000<br>280,000<br>Year 3<br>310,000<br>250,000<br>300,000<br>Year 4<br>310,000<br>180,000<br>250,000<br>Year 5<br>310,000<br>90,000<br>295,000<br>Year 6<br>310,000<br>90,000<br>195,000<br>Salvage value<br>70,000<br>80,000<br>Discount rate<br>10%<br>8%<br>12%<br>Economic life<br>4 years<br>5 years<br>6 years<br>

Extracted text: YOUR UNDARSIANDING Directions: Evaluate the following projects. Which is the best among them using the different tools in capital budgeting? Use the following tools to make your Project Cash outlay A В P920,000 decisions: P1,000,000 310,000 P880,000 1. Payback period 2. Net present value 3. Accounting rate of return 4. Profitability index Net Cash inflow Year 1 200,000 290,000 Year 2 310,000 220,000 280,000 Year 3 310,000 250,000 300,000 Year 4 310,000 180,000 250,000 Year 5 310,000 90,000 295,000 Year 6 310,000 90,000 195,000 Salvage value 70,000 80,000 Discount rate 10% 8% 12% Economic life 4 years 5 years 6 years

Jun 09, 2022
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