In what respect is PP not the whole answer as a means of assessing investment opportunities? Consider
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In what respect is PP not the whole answer as a means of assessing investment opportunities?
Consider the cash flows arising from three competing projects:
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Time Project 1 Project 2 Project 3 000 000 000 Immediately 1 year's time Cost of machine (200) (200) (200) 2 years' time 3 years' time 4 years' time 5 years' time 5 years' time Operating profit before depreciation Operating profit before depreciation Operating profit before depreciation Operating profit before depreciation Operating profit before depreciation Disposal proceeds 70 20 70 60 20 100 70 160 30 80 30 200 540 20 20 440 10 20
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The PP for each project is three years and so the PP met...View the full answer
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Related Book For
Accounting An Introduction
ISBN: 9780273733201
5th Edition
Authors: Eddie McLaney, Dr Peter Atrill, Eddie J. Mclan
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