Engr. Richard Flores has P 13, 760 in cash and he would like to invest it in business. His estimates of the year-by-year receipts and disbursements for all purposes are shown in the tabulation below: Year Receipts Disbursements - P 13, 760 P 5, 000 + P 1, 000 P 6, 200 + P 1, 200 6. P 7, 500 + P 1, 500 P 8, 800 + P 1, 800 He estimates that this equipment will have a salvage value of P 2, 000 at the end of useful life. Find the rate of return of the prospective investment. O 10. 11%

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter13: Corporations: Earning & Profits And Distributions
Section: Chapter Questions
Problem 6BCRQ
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A. 10.11% B. 10.34% C. 10.67% D. 10.98%
Engr. Richard Flores has P 13, 760 in cash and he would like to invest it in
business. His estimates of the year-by-year receipts and disbursements for all
purposes are shown in the tabulation below:
Year
Receipts
Disbursements
- P 13, 760
P
P 5, 009
+ P 1, 000
P 6, 200
+ P 1, 200
P 7, 500
+ P 1, 500
P 8, 800
+ P 1, 800
He estimates that this equipment will have a salvage value of P 2, 000 at the
end of useful life. Find the rate of return of the prospective investment.
10. 11%
O10. 34 %
Transcribed Image Text:Engr. Richard Flores has P 13, 760 in cash and he would like to invest it in business. His estimates of the year-by-year receipts and disbursements for all purposes are shown in the tabulation below: Year Receipts Disbursements - P 13, 760 P P 5, 009 + P 1, 000 P 6, 200 + P 1, 200 P 7, 500 + P 1, 500 P 8, 800 + P 1, 800 He estimates that this equipment will have a salvage value of P 2, 000 at the end of useful life. Find the rate of return of the prospective investment. 10. 11% O10. 34 %
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