A certain project with annual benefit of P 50,000 at the end of each year for a period of 6 years. Assuming money is 10% and benefit ratio is 1.02, compute the cost of the project. a. P426,896.00 b. P426,986.00 c. P426,968.00 d. P462,986.00

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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A certain project with annual benefit of P 50,000 at the end of each year for a period of 6 years. Assuming money is 10% and benefit ratio is 1.02, compute the cost of the project.

a.

P426,896.00

b.

P426,986.00

c.

P426,968.00

d.

P462,986.00

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