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What are the criteria for choosing a project planned

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Problem a. What are the criteria for choosing a project planned using the payback method and the net present value. What are the criticisms of the use of the payback period as a capital-budgeting technique? What are its advantages?

Problem b. Before a business project can be implemented, why is capital budgeting important in a company's financial management.?

Problem c. You are considering a project that will require an initial outlay of RM50,000.00. This project has an expected life of five years and will generate income cash flows to the company as a whole of RM15,000.00 each year.

Required:

Calculate:

i). Payback period

ii) Using rate of return is 10%, find the net present value

Reference no: EM132791688

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