Mr Li

! ! potential expenditures on bushel as settles process of analysing deciding whether hotel management should impregnable investing fundss Determine project be learn appropriate cost of capital at which to discount change flows work out expected funds flows from project present set of expected currency flows and of project ! ! Furniture purchase # $! % $ % & Replacements # investment decisions next cost time to come benefits shortcomings Future uncertain Not future costs and enlighten income decisions based on historic costs and winnings income wrong decision  $ !

* ( (* + ) ( ) ) compares initial investment with annual cash inflows 2008 2009 2010  delineate as expected yield of old age required retrieve original investment offer indication of Project projects risk shows how long original capital and liquidity at risk  accountant to calculate Hotel to spend S$200,000 on kitchen equipment how many years it take before S$200,000 trustworthy back in cash 2008 2009 2010 mensurable in terms of get original investment net cash flow cash received cash paid during a defined period nt me tal t en ins alm 1 t nst nd i en m 2 tal ns t rd i en 3 lm sta th in 4 st investment total cost Instalments during accounting periods instalments on investment cash receipts and cash payments Example ABC Hotel Ltd is considering investing in S$200,000 on kitchen equipment hobby information prepared to dungeon project: ! # Required : send prospective investments payback period. S$000 Cost of equipment S$000 200 pass judgment net cashflow: twelvemonth 1 10 twelvemonth 2 40 course of instruction 3 50 Year 4 100 Year 5 100 Net profitability 30 S$100 S$000 Cost of equipment Expected net cashflow: Year 1 10 Year 2 50 Year...If you unavoidable to get a abundant essay, order it on our website: Ordercustompaper.com

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