A company has minimum required rate of return of 10% and is considering investing in a project that requires an investment of P70,000 and is expected to generate cash inflows of P30,000 at the end of each year for 3 years. The present value of future cash inflows for this project is Correct answer: b. P74,610

A company has minimum required rate of return of 10% and is considering investing in a project that requires an investment of P70,000 and is expected to generate cash inflows of P30,000 at the end of each year for 3 years. The present value of future cash inflows for this project is Correct answer: b. P74,610

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...

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Redbird Company is considering a project with an initial investment of $265,000 in new equipment that will yield annual net cash flows of $45,800 each year over its seven-year life. The companys minimum required rate of return is 8%. What is the internal rate of return? Should Redbird accept the project based on IRR?
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