The likely investment on a project is USD 2800000. It is expected to take two years...
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The likely investment on a project is USD 2800000. It is expected to take two years for implementation of the project and the project is expected to earn profits from the third year onwards. The estimated profits, tax/deductions and depreciation are as below. Calculate the payback period. Operating Profit Tax/Deductions Depreciation 3rd Year 4th Year 5th Year 300000 350000 100000 120000 136000 660000 442000 296000 6th Year 7th Year 400000 450000 400000 150000 136000 198000 134000 The likely investment on a project is USD 2800000. It is expected to take two years for implementation of the project and the project is expected to earn profits from the third year onwards. The estimated profits, tax/deductions and depreciation are as below. Calculate the payback period. Operating Profit Tax/Deductions Depreciation 3rd Year 4th Year 5th Year 300000 350000 100000 120000 136000 660000 442000 296000 6th Year 7th Year 400000 450000 400000 150000 136000 198000 134000
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Initial investment 2800000 Cash Flow ProfittaxDepreciation Investment Step 24 2800000 3rd 4th 5th Go ... View the full answer
Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
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