Question: use the first photo as a basis for the solution kindly answer the problem. thank you and Godbless Accounting Methods The two techniques to measure

 use the first photo as a basis for the solutionkindly answer
the problem. thank you and Godbless Accounting Methods The two techniques to
use the first photo as a basis for the solution
kindly answer the problem. thank you and Godbless

Accounting Methods The two techniques to measure the economic feasibility are the following: 1. Payback Analysis It determines the amount of time required (usually in years) for an investment to generate sufficient cash flows to recover initial cost. a. Averaging Method - even cash inflow Initial investment Payback Period - Annual Net Cash Inflow Where: Annual Net Cash Inflow Annual cash inflow - Annual cash outflow Problem. Assume the following cash flow for 2 projects.Assuming that the cash flows are occurring at the end of the year. Find the payback period for both these projects. Year Project 1 Project 2 -1000 -1000 1 500 100 2 400 300 3 200 500 4 100 600 5 100 700 Solution: NO

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