use 10%

16. For the following cash flows, calculate the payback and the discounted payback (figures in Tshs million) Time 0 1 2 3 4 5 7 (Years) A -3,000 500 500 500 500 500 500 500 B -10,000 5,000 3.000 2,000 2,000 5,000 4,000 4,000 C -15,000 5,000 10,000 D -4,000 1,000 1,000 1,000 1,000 7,000 7,000 7,000 E -8.000 500 500 500 2,000 5,000 10,000 7,000 17. Explain how each of the following can lead to sub-optimal investment process: a) Relying on top-down idea generation; b) Managers being judged solely on accounting rate of return; c) A requirement that projects have a quick payback; d) Post-auditing once only, one year after completion: e) Post-auditing conducted by managers from 'rival' divisions; f) Over-optimism of project sponsors