One of the reports submitted by the infrastructure development team revealed the following Cashflows A -...
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One of the reports submitted by the infrastructure development team revealed the following Cashflows A - R 210 000 R15 000 R 30 000 R 30 000 R 370 000 Year 0 1 2 3 4 Suppose you require a 15 per cent return on investment. 2.1 Using the payback period, which investment would you choose and why? 2.2 If you apply the NPV rule which investment, will you choose and why? 2.3 Based on the provided answers which project would you finally choose and why? Cashflow B - R 21 000 R11 000 R 9 000 R11 000 R 9 000 (6 marks) (6 marks) (3 marks) One of the reports submitted by the infrastructure development team revealed the following Cashflows A - R 210 000 R15 000 R 30 000 R 30 000 R 370 000 Year 0 1 2 3 4 Suppose you require a 15 per cent return on investment. 2.1 Using the payback period, which investment would you choose and why? 2.2 If you apply the NPV rule which investment, will you choose and why? 2.3 Based on the provided answers which project would you finally choose and why? Cashflow B - R 21 000 R11 000 R 9 000 R11 000 R 9 000 (6 marks) (6 marks) (3 marks)
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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