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Forums › ACCA Forums › ACCA MA Management Accounting Forums › INVEATMENT APPRAISALS
How to calculate ; the Internal Rate of Return ,the Accounting rate rate return, Payback Period for the project…..For example you have Able ltd company. project information ;initial cost is 300,000, Estimated scrap value is 20,000…expected life is 5 years ,Additional revenue to project 120,000 per year …. incremental costs of the project is 30,000 per year…… Cost of capital is 10 percent ……Then now you are asked to find the IRR,ARR and the Payback period
Have you watched the free lectures on investment appraisal?
It is all explained in the lectures.
(The free lectures are a complete course for Paper F2 and cover everything needed to be able to pass the exam well)