An investment has the following annual cash flow1st year-Php50,0002nd year- Php 65.0003rd year - Php 45,0004th year Php 40.000Sth year - Php 40,000The current cost of the investment is Php700,000. The investment can be sold at the endof Sth year for Pho700,00. The entity can borrow funds for 10%.Requirement: Compute the following* Present Value of the Investmentb. Net present value of the investmentShow your solunons

ln Finance the Time value is considered to find out the present value and future value of cash flow.…

An investment has the following annual cash flow 1st year- Php50,000 2nd year- Php 65.000 3rd year - Php 45,000 4th year Php 40,000 Sth year- Php 40,000 The current cost of the investment is Php700,000. The investment can be sold at the es of Sth year for Pho700,00. The entity can borrow funds for 10%N. Requirement: Compute the following Present Value of the Investment b. Net present value of the investment

An investment has the following annual cash flow 1st year- Php50,000 2nd year- Php 65.000 3rd year - Php 45,000 4th year Php 40,000 Sth year- Php 40,000 The current cost of the investment is Php700,000. The investment can be sold at the es of Sth year for Pho700,00. The entity can borrow funds for 10%N. Requirement: Compute the following Present Value of the Investment b. Net present value of the investment

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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