A group of engineers formed a corporation and the opportunity to invest P8,000,000. Their plan is to expand a domestic operation. It is estimated that this investment would return a net year end cash flow of P2,000,000 each year for 10 years and at the end of that time, the physical assets, which would no longer be needed, could be sold at P5,000,000. Compute the rate of return. 24.51% 22.68% 21.33% 23.81% 25.11% 20.95%
A group of engineers formed a corporation and the opportunity to invest P8,000,000. Their plan is to expand a domestic operation. It is estimated that this investment would return a net year end cash flow of P2,000,000 each year for 10 years and at the end of that time, the physical assets, which would no longer be needed, could be sold at P5,000,000. Compute the rate of return. 24.51% 22.68% 21.33% 23.81% 25.11% 20.95%
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section10.A: Mutually Exclusive Investments Having Unequal Lives
Problem 2P
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A group of engineers formed a corporation and the opportunity to invest P8,000,000. Their plan is to expand a domestic operation. It is estimated that this investment would return a net year end cash flow of P2,000,000 each year for 10 years and at the end of that time, the physical assets, which would no longer be needed, could be sold at P5,000,000. Compute the rate of return .
24.51%
22.68%
21.33%
23.81%
25.11%
20.95%
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