Managerial Accounting

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What Capital Budgeting Method Uses Formula?


Assume that a project consists of an investment of \$500,000 and expects to generate net after-tax cash flows of \$80,000 in each of the next 4 years, the life of the investment. Which method(s) would compute using this formula:

$$ X = \cfrac{\$500,000}{\$80,000} $$

Highlight Answer(s) Below

Net present value Internal rate of return Accrual accounting rate of return Payback method