Quelpr
6 marksInvestment Appraisal

CAPE Management of Business Unit 1 · 2010 · Paper 2 · Question 5(b)

Compute the payback period, in years, to two decimal places, for EACH project.

This question uses a figure or table from the paper — you'll see it when you practise.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 5(a)Compute the cumulative cash flow for EACH project.[13 marks]
  2. 5(c)Indicate, giving a reason, which project the company should accept based on payback period.[3 marks]
  3. 5(d)Assume the IRR (Internal Rate of Return) of the projects are: Project A: 11.5%, Project B: 8%, Project C: 15%. Based on the IRR, indicate, giving a reason,…[3 marks]

More practice: the rest of this paper · more Investment Appraisal questions · all CAPE Management of Business Unit 1 past papers