Calculation of Discounted Payback Period and Net Present Value
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Question
Rebus Company is trying to make a decision between two projects. Their calculations are as below.
|
PROJECT A |
PROJECT B |
||
|
Cash inflow |
cumulative cash inflow |
Cash inflow |
cumulative cash inflow |
|
8500 |
8500 |
6500 |
6500 |
|
9000 |
17500 |
6000 |
12500 |
|
9500 |
27000 |
7000 |
19500 |
- Calculate payback period
- Calculate discounted payback period
- Calculate net present value
- Calculate internal rate of return
Summary
This question belongs to accounting and discusses about calculation of payback period, discounted payback period, net present value and internal rate of return for a given projects.
Total word count: 300
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