00           12,000 3                  50,000           18,000 4                390,000           10,500 Whichever project you choose, if any, you require a 15 per cent return on your investment. a. If you apply the payback criterion, which will you choose? Why? b. If you apply the discounted payback criterion, which investment will you choose? Why? c. If you apply the NPV criterion, which investment will you choose? Why? d. If you apply the IRR criterion,

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A: The IRR represents the actual return from the investment or project. The IRR method of evaluating…

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A: Profitability Index is computed as follows:-Profitability Index =

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A:

Q: please answer

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A: Payback Period: The time required to recover the initial investment in a project. Choose an option…

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Q: (a). Using the net present value method, which project should be accepted? (b). Using the internal…

A: NPV = -Initial outlay + Present value of cash flows. IRR is the internal rate of return at which the…

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Q: O O D 9,550 9,550 9,550

A: Given required rate of return for both the project =11%  First we have to find out the total Present…

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A: NPV is calculated as present value of cash flows less initial investment

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A: Net present value is capital budgeting technique used for making investment decisions.  It is…

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A: The discounted payback period is used to measure the amount of time it takes the discounted cash…

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A: The question is based on the concept of Cost Accounting.Payback period is the period in the initial…

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A: The process of evaluating potential investments and projects is known as capital budgeting. It…

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A: a) Working note:

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A: Here, Formula of Annual Equivalent is as follows: Annual Equivalent=Net Present ValuePVAF(i%,n)

Q: Pay back Period

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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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A: nternal rate of return(IRR) is the discount rate that equates the NPV of an investment opportunity…

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Q: ) Consider the following project: Year                              Cash Flow 0 – $ 3,024…

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.