Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2. (596) an equipment costing p700,000 will produc

2. (596) An equipment costing P700,000 will produce annual net cash inflows of P300,000. At...

50.1K

Verified Solution

Question

Accounting

image
2. (596) An equipment costing P700,000 will produce annual net cash inflows of P300,000. At the end of its useful life of five years, the equipment will have a P20,000 residual value. Additional working capital of P250,000 is needed. The desired rate of return is 14%. Determine the net present value. 3, (5%) An equipment costing P800,000 with a residual value of P20,000 at its useful life of five years, is expected tob ring the following net cash inflows: Yr 1-P350,000; Yr 2 - P250,000; Yr 3- P200,000; Yr 4 P150,000; and Yr 5- P 100,000. Determine the net present value using a discount rate of 12%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students