An equipment costing P120,000 is expected with an estimated economic life of 6 years, salvage value of P10,000, is expected to bring in net cash inflow of P70,000 in the first year of operations, P50,000 in the second year, P30,000 in the third year, P20,000 in the fourth year, P10,000 in the fifth year and P5,000 in the sixth year. Compute the net present value assuming that the desired rate of return if 18%

An equipment costing P120,000 is expected with an estimated economic life of 6 years, salvage value of P10,000, is expected to bring in net cash inflow of P70,000 in the first year of operations, P50,000 in the second year, P30,000 in the third year, P20,000 in the fourth year, P10,000 in the fifth year and P5,000 in the sixth year. Compute the net present value assuming that the desired rate of return if 18%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

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