Super Company is planning to invest P 80,000 in a 3-year project. The internal rate of return (IRR) of this investment is 10%. The PV of P 1 at 10% for 1 year is .909, for two years is .826 and for 3 years is .751. The net cash flows net of income taxes will be P 30 000 for the first year and net cash flows net of income taxes will be P 30,000 for the first year, and P 36,000 for the second year. How much is the net cash flow net of income taxes for the 3rd year?P 17,268P 22,000P 22,994P 30,618

The sum over time of total cash received (inflow) from sales or loans less the total amount of money…

Answered: Super Company is planning to invest P…

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 22E

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Super Company is planning to invest P 80,000 in a 3-year project. The internal rate of return (IRR) of this investment is 10%. The PV of P 1 at 10% for 1 year is .909, for two years is .826 and for 3 years is .751. The net cash flows net of income taxes will be P 30 000 for the first year and net cash flows net of income taxes will be P 30,000 for the first year, and P 36,000 for the second year.

How much is the net cash flow net of income taxes for the 3rd year?

P 17,268

P 22,000

P 22,994

P 30,618

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