Angat Corporation is evaluating the purchase of a P 500,000 die attach machine. The cash inflows expected from the investment is P 150,000 per year for five years with no equipment salvage value. The cost of capital is 14%. The net present value For five years at 14% is 3.433 and at 16% is 3.274 The internal rate of return for this Investment is

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Angat Corporation is evaluating the purchase of a P 500,000 die
attach machine. The cash inflows expected from the investment
is P 150,000 per year for five years with no equipment salvage
value. The cost of capital is 14%. The net present value For five
years at 14% is 3.433 and at 16% is 3.274 The internal rate of
return for this Investment is
13.8 %
O 14.5%
15.3%
O 15%
Transcribed Image Text:Angat Corporation is evaluating the purchase of a P 500,000 die attach machine. The cash inflows expected from the investment is P 150,000 per year for five years with no equipment salvage value. The cost of capital is 14%. The net present value For five years at 14% is 3.433 and at 16% is 3.274 The internal rate of return for this Investment is 13.8 % O 14.5% 15.3% O 15%
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