Investment appraisal part b, Payback period

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1. Edgar says:

   February 27, 2013 at 10:22 pm

   I cant get the question 2 in test for this chapter, please help. How i supposed to know what percentage i need to work out to compare it with 12% and NPV 33830.

   Also Im getting 3.34 in question 4 which is C and not D as its on the back.

   Many thanks in advance

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   • Edgar says:

     February 28, 2013 at 3:07 pm

     Please help i only have 7 days left to exam

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   • johnmoffat says:

     March 1, 2013 at 10:27 am

     You can use any percentage as the second guess. The IRR will be slightly different because the relationship is not linear, but it will be the same to the nearest %.

     The answer to question 4 is D. ‘Within’ means less than. 3.34 is not less than 3 years.

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2. faizi95 says:

   February 14, 2013 at 11:58 am

   how did you get 0.909 ?

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   • johnmoffat says:

     February 14, 2013 at 1:13 pm

     From the discount tables. It is the one year discount factor at 10%.
     (Have you watched the previous lecture on investment appraisal – part A ?)

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3. tansi235 says:

   December 3, 2012 at 9:51 am

   THANK YOU LOAAADS!!!!!

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4. accakeisha says:

   October 23, 2012 at 8:47 pm

   great great great explanation OT……THUMBS WAY WAY UP!!!!

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