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For each of the following projects compute (I) pay-back period, (ii) post payback profitability (iii) post-back profitability index a) Initial outlay Shs.50,000,000 Annual cash
For each of the following projects compute (I) pay-back period, (ii) post payback profitability (iii) post-back profitability index a) Initial outlay Shs.50,000,000 Annual cash inflow (after tax but before depreciation) Shs.10,000,000 Estimated life b) Initial outlay 8 Years Shs.50,000,000 Annual cash inflow (after tax but before depreciation) First three years Shs .15,000,000 Shs. 5,000,000 Next five years Estimated life Salvage 8 Years Shs. 8,000,000
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There are 3 Steps involved in it
Step: 1
To compute the requested metrics for the two projects we need to follow these steps Project A Initia...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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