Using the three methods of evaluation in capital budget

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An electronic company is planning for huge investment to be undertaken in the next year. To conduct this project, the company has an overhaul investment amounting of USD 3 million. This project is expected to long last for 8 years and is expected to have a proceed of USD 500,000 annually. The market expects the rate of return with 10% annually.

What do you think of the planned project as a managerial accountant? Using the three methods of evaluation in capital budget?

Reference no: EM132028728

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