Post pay back profitability

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Web24 Jun 2024 · Profitability Index (PI) The profitability index is the ratio between the present value of all future cash flows and the initial cash outflow of the investment. If the ratio is … WebThe profitability of project ‘Y’ shows that the rate of return is 40%. Using the rate of return method project ‘Y’ yields a rate of return of 40.05 per cent while project ‘X’ yields 35.8%. On this basis Project ‘Y’ is recommended. Question No. 5 A company is faced with the Question of choosing between two mutually exclusive projects.

CB final - Capital Budgeting NON- DISCOUNTED METHOD OF

WebThe formula for discounted payback period is: Discounted Payback Period =. - ln (1 -. investment amount × discount rate. cash flow per year. ) ln (1 + discount rate) The … Web20 Jun 2014 · IMTS Finance Management (Corporate Finance Management) crystal lynn ray

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Web30 Oct 2012 · An improvement to this method can be done only by taking into account the return received after the pay back period. Post pay back profitability= post pay back … Web20 Oct 2024 · Post pay back profit and c. Post pay back profitability index Advertisement fiercespartain Answer: Explanation: for option a i would consider project y as it's annual cash inflow is less compared to project x . the b option is alo project y as they will have 5,000 profit annually when they are paying back. Advertisement Advertisement Web20 Sep 2024 · Disadvantages Of Payback Method. 1. Ignores Time Value of Money. The method ignores the time value of money. A project’s cash inflow might be irregular. … crystal lynn sanders

Post pay back profitability

ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS) END …

Web2 days ago · Since March 31, shares of Bud Light’s parent company have fallen by nearly 4% — knocking down the company’s market capitalization from $132.38 billion to $127.13 billion on Wednesday.... Web4 Dec 2024 · We can compute the payback period by computing the cumulative net cash flow as follows: Payback period = 3 + (15,000 * /40,000) = 3 + 0.375 = 3.375 Years * Unrecovered investment at start of …

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WebFor each of the following projects compute (i) pay back period (ii) Post pay back profitability and (iii) post pay back profitability index. (a) Initial outlay Rs. 50,000 Annual cash inflow … Web126 Financial Management 5 20,000 1,00,000 6 8,000 1,08,000 7 8,000 1,16,000 8 8,000 1,24,000 9 8,000 1,32,000 10 8,000 1,40,000 (ii) Post pay-back profitability. = Cash inflow …

Web19 Jan 2024 · Ques 1: Net present value is a tool of Capital budgeting to analyze the profitability of a project or investment. It is calculated by taking the difference between … Web6 May 2024 · The formula is built in cell C10: Payback Period = 2 + (75/100) = 2.75. The answer results in a payback period of 2.75 years, which makes sense since the waterfall …

WebAnswer of From the following particulars, compute: 1. Payback period. 2. Post pay-back profitability and post pay-back profitability index. (a) Cash outflow... Web21 Sep 2024 · Post Pay Back Period, Post Pay Back Profitability - YouTube CB4-Post Pay-Back Period, Post pay-back profits and Post Pay back profits1. Capital Budgeting …

WebCalculate post pay back profitability index from the following: Post pay back profits – Rs. 20,000 Initial Investment – Rs. 50,000 9. What do you mean by Stock Split? ... compute the Pay-back period: Particulars Amount (Rs.) Initial Outlay 80,000 Profit after Tax for the estimated life of 5 yrs.: 1st year 6,000 2nd year 14,000 3rd year ...

Web10 May 2024 · The payback period is expressed in years and fractions of years. For example, if a company invests $300,000 in a new production line, and the production line then … dwts contemporary dancesWeb14 Dec 2024 · “If a startup acquires a customer for $100, and that customer generates $10/mo in revenue, with 80% gross margins (or $8 of monthly gross profit), the payback … dwts contactWebPayback method This method focuses on liquidity rather than the profitability of a product. It is good for screening and for fast moving environments The payback period is the … dwts country singerWeb21 Sep 2024 · Post Pay Back Period, Post Pay Back Profitability - YouTube CB4-Post Pay-Back Period, Post pay-back profits and Post Pay back profits1. Capital Budgeting (Introduction)-... crystal lynn shullWeb6 May 2024 · Payback Period = 500 / 90 This results in a payback period of 5.56 years. As you can see, it is a very simple calculation to run and conceptualize. The project will recoup its investment in a little over five and a half years. Payback Period Example with Uneven Cash Flows What about if cash flows are uneven? crystal lynn shifflettWebIt helps to compute payback period which reflects the time period require to re-earn the initial cash outlay. While, the drawback of this method is it ignore time value of money and does not consider post pay back profitability ( Al-Ajmi, Al-Saleh and Hussain, 2011 ). dwts comedianWeb19 Jun 2024 · 5) For each of the following projects compute (i) pay-back period, (ii) post pay-back profitability and (iii) post-back profitability index 6) X Ltd. is considering the … dwts counry night