FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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Question
Chapter 24, Problem 1QS
To determine
Investment decision:
Investment decision can be referred to as capital budgeting. It involves finding solutions to questions like whether to add to capital assets today will increase the revenues of tomorrow to cover costs.
The payback period of the investment.
Expert Solution & Answer
Answer to Problem 1QS
Solution:
The payback period of the investment is 3 years.
Explanation of Solution
Calculate the payback period as shown below.
Therefore, the payback period is 3 years.
Conclusion
Hence, the payback period of the investment is 3 years.
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