MANAGEMENT ACCOUNTING
JUNE 2020
MEMORANDUM
PREPARED BY: MTHOMBENI
0767297208
, QUESTION ONE
1.1 Payback period
PAYBACK PERIOD: PROJECT 1
Investment (R100000)
Year 1 Cash flow R65000
(R35000)
Year 2 Cash flow R30000
(R5000)
Year 3 Cash flow R30000
R25000
Workings:
R5000÷R30000X12 months= 2 months
Payback period is: 2 years and 2 months
PAYBACK PERIOD: PROJECT 2
= R100000
R35000
= 2,857
Payback period is: 2 Years ,10 months and 26 days
1
JUNE 2020
MEMORANDUM
PREPARED BY: MTHOMBENI
0767297208
, QUESTION ONE
1.1 Payback period
PAYBACK PERIOD: PROJECT 1
Investment (R100000)
Year 1 Cash flow R65000
(R35000)
Year 2 Cash flow R30000
(R5000)
Year 3 Cash flow R30000
R25000
Workings:
R5000÷R30000X12 months= 2 months
Payback period is: 2 years and 2 months
PAYBACK PERIOD: PROJECT 2
= R100000
R35000
= 2,857
Payback period is: 2 Years ,10 months and 26 days
1