AAAs have option to invest in Company's BBBS newly constructed Condo. The WACC is 6%. The required investment is P6,000,000.00. The project will last for four years with estimated cash flow of P1,000,000.00 per year. -Compute for Discounted Cash Flow -How much is the Net Present Value  -If you are the manager of Company AAAS, will you consider investing in the project? Wh

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 10PB: Bouvier Restaurant is considering an investment in a grill that costs $140,000, and will produce...
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Company AAAs have option to invest in Company's BBBS newly constructed Condo. The WACC is 6%. The required investment is P6,000,000.00. The project will last for four years with estimated cash flow of P1,000,000.00 per year.

-Compute for Discounted Cash Flow

-How much is the Net Present Value 

-If you are the manager of Company AAAS, will you consider investing in the project? Why? 

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