Effective Writing 10th Edition by Claire May,Gordon May

Exercise 11

You are newly hired as an accountant for the Hill Business Technologies, Inc., a small service business that has no formal capital budgeting system. The president of your company, Janice Hill, has requested that you write a memo to her explaining what the net present value method of investment evaluation is, how it differs from the payback period method, and why Hill Business Technologies should use the net present value method for capital budgeting purposes instead of the payback method. Write the memo.