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8 marksCapital Budgeting and Investment Appraisal

CAPE Accounting Unit 2 · 2010 · Paper 2 · Question 3(c)

Briefly describe FOUR non-financial benefits that may accrue to the company if it decides to proceed with investment project B (emission reduction equipment).

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Other parts of this question

  1. 3(a)(i)Compute the payback period for EACH investment project.[6 marks]
  2. 3(a)(ii)Compute the net present value for EACH investment project.[15 marks]
  3. 3(a)(iii)Compute the profitability index for EACH investment project.[3 marks]
  4. 3(b)Rank the three investment projects based on the three measures computed in (a)(i) to (iii).[3 marks]

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