Exercise 2 Masikap has an investment opportunity costing P180,000 that is expected to yield the following cash flows over the next five years: Year One Year Two P 30,000 P 60,000 Year Three P 90,000 P 60,000 P 30,000 Year Four Year Five Required: a. Find the payback period of the investment. b. Find the accounting rate of return of based on original investment.
Exercise 2 Masikap has an investment opportunity costing P180,000 that is expected to yield the following cash flows over the next five years: Year One Year Two P 30,000 P 60,000 Year Three P 90,000 P 60,000 P 30,000 Year Four Year Five Required: a. Find the payback period of the investment. b. Find the accounting rate of return of based on original investment.
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...
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