Following information is given of ABC Ltd. Cash Outflow $150,000 Annual Cash inflow after depreciation First 4

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Following information is given of ABC Ltd.

Cash Outflow $150,000

Annual Cash inflow after depreciation

First 4 years $25,000

Next 6 years $10,000

Estimated life 10 years

Salvage Value $15,000

Required : Calculate

1)Payback period

2) Explain the Capital Budgeting process of any Organization.

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: May 13, 2024 12:17 PM

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Following information is given of ABC Ltd. Cash Outflow $150,000 Annual Cash inflow after depreciation First 4

Question:

Expert Answer:

1 Payback Period The payback period is a financial metric used to determine the length of time it takes for an investment to generate enough cash inflows to recover the initial cash outflow In this ca... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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