An investment of P40,000 has a revenue of X pesos at the end of the first and second year. Given a discount rate of 15% compounded annually, find so that the net present worth of the investment is zero. Answer in whole number.

An investment of P40,000 has a revenue of X pesos at the end of the first and second year. Given a discount rate of 15% compounded annually, find so that the net present worth of the investment is zero. Answer in whole number.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 7PROB

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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An
investment of P40,000 has a revenue of X pesos at the end of the first and second year. Given a discount rate of 15% compounded annually, find
X so that the net present worth of the investment is zero. Answer in whole number.

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