27.The cash flows for a project are £3,000 in Year 1, £5,000 for Year 2, and £4,000 in Year 3. The project pays back for itself in 2.5 years.The initial cost of the project was:a) £8,000b) £12,000c) £11,000d) £10,000 27.The cash flows for a project are £3,000 in Year 1, £5,000 for Year 2, and £4,000 inYear 3. The project pays back for itself in 2.5 years.The initial cost of the project was:£8,000£12,000£11,000c)£10,000d)

The question is related to Capital Budgeting. The Payback period is the length of time required to…

27. The cash flows for a project are £3,000 in Year 1, £5,000 for Year 2, and £4,000 in Year 3. The project pays back for itself in 2.5 years. The initial cost of the project was: £8,000 £12,000 £11,000 £10,000 d)

27. The cash flows for a project are £3,000 in Year 1, £5,000 for Year 2, and £4,000 in Year 3. The project pays back for itself in 2.5 years. The initial cost of the project was: £8,000 £12,000 £11,000 £10,000 d)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

27.

The cash flows for a project are £3,000 in Year 1, £5,000 for Year 2, and £4,000 in Year 3. The project pays back for itself in 2.5 years.

The initial cost of the project was:

a) £8,000
b) £12,000
c) £11,000
d) £10,000

27.
The cash flows for a project are £3,000 in Year 1, £5,000 for Year 2, and £4,000 in
Year 3. The project pays back for itself in 2.5 years.
The initial cost of the project was:
£8,000
£12,000
£11,000
c)
£10,000
d)

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