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FNT1_TASK2_HINTSB - the task you will also need to know...

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For the second part of task 2 you are going to be asked to answer this very question along with questions about other capital budgeting methods  such as IRR, NPV and Payback period.  Please see the FAQ document posted under the documents section of this community. You should also refer to Chapter 25 pages 998 - 1007 in the Fundamentals of  Accounting Principles textbook, 18 th  edition by Wild, Larson, and Chiappetta.  Not only do you need to understand these concepts for the written section of
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Unformatted text preview: the task you will also need to know this information for the FNC1 objective assessment. AGCIF = average gross cash inflows Dt = depreciation per year %T = percentage of Tax n = number of years (project life) Average net income = AGCIF-Dt-((AGCIF-Dt)*%T)/n Average investment = book value yr1 + book value at end - salvage/2 ARR + Average net income / Average investment...
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