Capital Budgeting — Accounting Rate of Return & Payback Period

[girocortez]

Thank you for this Sir! God bless po. 😊

[jemadiwata]

In computing the annual rate of return, is it a standard that we should use the Before Tax Cash Flow amount? Or if there is an income tax rate, we must deduct it first? Thank you, sir!

[manjaresronalyn-fojj]

tenkyuu hahaha mababaliw nako ganto lang pala kadali

[oliverjaimehermogenes]

In getting average investment, if the problem has salvage value, should we add it to the initial investment and then divide it by 2 or should we deduct it from the initial investment then divide it by two? Our module says in getting average investment the formula is initial investment minus the salvage value then divide it by 2. Which is true?

[AJlLopez]

Sir may i ask, what if we do have a salvage value? Should we consider it in answering the initial investment? Like. Adding it to the BTCF before deducting the depreciation

[rizzavaleriearizo]

Sir, when calculating for the average investment, is it always initial investment divided by 2?

[jemadiwata]

Why 800K + 0, sir?
in computing for the average annual investment. What amount must be added to the initial investment before dividing it with 2?

[lynjaraparcasio]

Can you please tagalog please, is it more understandable if you use our own language in teaching accounting subject.