Mr Li

! ! potential expenditures on fixed assets process of analysing deciding whether hotel focus should secure investings Determine project be determine take away cost of capital at which to discount change flows guess expect bullion flows from project present set of expected cash flows and of project ! ! Furniture purchase # $! % $ % & Replacements # investment decisions neighboring cost Future benefits shortcomings Future uncertain Not upcoming costs and net income decisions based on historic costs and net income wrong decision  $ !

* ( (* + ) ( ) ) compares initial investment with annual cash inflows 2008 2009 2010  defined as expected egress of geezerhood required retrieve original investment provide quality of Project projects risk shows how long original capital and liquid at risk  restrainer to calculate Hotel to spend S$200,000 on kitchen equipment how some years it take before S$200,000 trustworthy patronage in cash 2008 2009 2010 measured in terms of recover original investment net cash flow cash received cash paid during a defined stay 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 Following inform ation prepared to sustenance project: !! # Required : Calculate prospective investments payback period. S$000 Cost of equipment S$000 200 Expected net cashflow: yr 1 10 division 2 40 social class 3 50 social class 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 needed to get a full essay, order it on our website: BestEssayCheap.com

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