CAPE Accounting Unit 2 · 2010 · Paper 2 · Question 3(b)
Rank the three investment projects based on the three measures computed in (a)(i) to (iii).
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- 3(a)(i)Compute the payback period for EACH investment project.[6 marks]
- 3(a)(ii)Compute the net present value for EACH investment project.[15 marks]
- 3(a)(iii)Compute the profitability index for EACH investment project.[3 marks]
- 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).[8 marks]
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