BY Ltd is considering carrying out a major programme of staff training. The training scheme will cost

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BY Ltd is considering carrying out a major programme of staff training. The training scheme will cost £100,000 and will be paid for immediately. It is expected to produce additional cash flows as follows: image text in transcribed

The cost of capital to the company is 6%.
Required

(a) Evaluate the expenditure on the staff training scheme.

(b) Comment on other factors to be considered before taking up the training scheme.

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Management Accounting

ISBN: 978-0273701996

4th Edition

Authors: Pauline Weetman

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Question Posted: Feb 04, 2024 05:02 AM

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Complete the table below, for the above transactions

BY Ltd is considering carrying out a major programme of staff training. The training scheme will cost

Question:

One year from today Two years from today Three years from today Four years from today Five years from today Additional cash inflow 50,000 40,000 30,000 30,000 20,000

Step by Step Answer:

To evaluate the expenditure on the staff training scheme we can use the Net Present Value NPV method which is a common approach in capital budgeting t...View the full answer

Management Accounting

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