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Company Seventh vision is considering an investment of $100,000. The useful life of the project is 10 years. The cutoff period is three (3) years.
Company Seventh vision is considering an investment of $100,000. The useful life of the project is 10 years. The cutoff period is three (3) years. The board of directors has identified two alternatives A and B. The expected annual cash flows are as follows:(Using payback period) Q3. Suggest Seventh Vision which project is feasible to choose? (7 marks) Q4. Mentions any three valid reasons for choosing the particular project (3 Marks) Part III Q5. Why is important for firms to use pay back method in financial decision making give 5 valid reasons?(2.5 marks) Q6. Explain the accept and reject criteria of payback methods in detail.(2.5 marks)
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