Assume that Aurora Company is planning to invest P4M in a new project which will provide a uniform net cash inflows of P1.3M for 5 years. The company uses 12% as cost of capital. If the NPV and IRR are to be computed manually, the values are:
Assume that Aurora Company is planning to invest P4M in a new project which will provide a uniform net cash inflows of P1.3M for 5 years. The company uses 12% as cost of capital. If the NPV and IRR are to be computed manually, the values are:
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...
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Assume that Aurora Company is planning to invest P4M in a new project which will provide a uniform net
• NPV= P686,200; IRR= 18.736%
• NPV= P686,200; IRR= 18.850%
• NPV= P686,200; IRR= 18.718%
• NPV= P686,200; IRR= 18.729%
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