Year Project Pizza (100,000) 50,000 50,000 1. Given the cash flows above and a discount rate of 5%, compute the payback period and NPV of Project Pizza. 2. If PHP50,000 is earned on the 3rd year of the project, what is the new NPV of the project? What is the payback period?

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 5MCQ: An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second...
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1.1 How does the risk and return trade-off can be applied in real life?

Year
Project Pizza
(100,000)
1
50,000
50,000
1. Given the cash flows above and a discount rate of 5%, compute the payback period and NPV of
Project Pizza.
2. If PHP50,000 is earned on the 3rd year of the project, what is the new NPV of the project? What is
the payback period?
Transcribed Image Text:Year Project Pizza (100,000) 1 50,000 50,000 1. Given the cash flows above and a discount rate of 5%, compute the payback period and NPV of Project Pizza. 2. If PHP50,000 is earned on the 3rd year of the project, what is the new NPV of the project? What is the payback period?
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