Page 253 - Microsoft Word - 00 ACCA F2 Prelims.docx

Capital budgeting

Step 3 – work out what fraction of a year was required in the last year of payback.

£35,000 ÷ £60,000 × 12 = 7 months

Or £60,000 ÷ 12 = £5,000 a month, £35,000 ÷ £5,000 = 7 months

Accept

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