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) &Moving; to another question will save this response. Question 22 considering to purchase a heavy duty grill for his restaurant Estimated total Insustmont is $100000, and below stream of net cash Sow s docision? expected for the neat fve yoars fair discount ad $100,000 $10,000 20,000 30,000 30,000 30,000 If the cut-off date is 4 years, what should be his decision based on the payback period method? O Purchase because payback period of 5 years is greater than the cut-off date of 4 years O Purchase because payback period of 4 years meets the cut-off date of 4 years Do not purchase because payback period of 5 years does not meet the ODo not purchase because payback period of 3 yoars is shorter than the cuf -off date of years cut -off date of 4 years. & Moving to another question will save this response MacBook Air 888 a 7 6 5 4 3 2

Solution

23.

As the cutoff date is 4 years , that means within 4 years cash inflow should meet the cost of the investment

So as the payback period is more that 4 years that is 5 years so that means it does not meet cutoff period

So correct answer is C do not purchase as the payback period is more that cutoff date

24 . In sales comparison approad all the factors must be taken care of

As the price must not be from related

Price must not be from any unusual circumstance and

Quality must be seen at the time of adjustment

So correct answer is D