Problem 6.Justine Global Info Tech records the following cash flows at the end of each year fora project. If the firm's discount rate is 11%, what is the PRESENT VALUE of theproject?YearCash Flow1P794,633.00P542,149.00P836,200.00P716,080.002345P520,354.00 Problem 5.Your firm is evaluating a project that should generate revenue of P4,600 in yearone, P5,200 in year two, P5,900 in year three, and P5,700 in year four. The firmreceives each cash flow at the end of each year. If your firm's required return is12%, compounding semi-annually, what is the future value of these cash flows atthe end of year four?

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lustine Global Info Tech records the following cash flows at the end of each year for a project. If the firm's discount rate is 11%, what is the PRESENT VALUE of the project? Year Cash Flow P794,633.00 2 P542,149.00 3 P836,200.00 4 P716,080.00 5 P520,354.00

lustine Global Info Tech records the following cash flows at the end of each year for a project. If the firm's discount rate is 11%, what is the PRESENT VALUE of the project? Year Cash Flow P794,633.00 2 P542,149.00 3 P836,200.00 4 P716,080.00 5 P520,354.00

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 2PROB

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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.

Question

Problem 6.
Justine Global Info Tech records the following cash flows at the end of each year for
a project. If the firm's discount rate is 11%, what is the PRESENT VALUE of the
project?
Year
Cash Flow
1
P794,633.00
P542,149.00
P836,200.00
P716,080.00
2
3
4
5
P520,354.00

Problem 5.
Your firm is evaluating a project that should generate revenue of P4,600 in year
one, P5,200 in year two, P5,900 in year three, and P5,700 in year four. The firm
receives each cash flow at the end of each year. If your firm's required return is
12%, compounding semi-annually, what is the future value of these cash flows at
the end of year four?

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