Solved: List and describe each of the five stages in capital, Accounting Basics

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List and describe each of the five stages in capital

Q1- List and describe each of the five stages in capital budgeting.

Q2- The Proposal A and B is a 2 year payback while Proposal C would be a 1 year.

Payback for Proposal A:

Year 1 $80,000

Year 2 10,000

Payback is 2 years $90,000

Payback for Proposal B:

Year 1 $45,000

Year 2 45,000

Payback is 2 years $90,000

Payback for Proposal C:

Year 1 $90,000

What is net present value?

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Accounting Basics: List and describe each of the five stages in capital

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