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1?. 13. 19. 2D. ltemsul toililyarue based on the following information BahalikBabawiMagna Company has gathered the following data on a proposed investment project; Investment required
1?. 13. 19. 2D. ltemsul toililyarue based on the following information BahalikBabawiMagna Company has gathered the following data on a proposed investment project; Investment required in equipment P 142.50%] Annual cash inows 3030!] Life of the investment 8 years Required rate of return 111% The payback period for the investment is closest to: a. 3.00 years c. 4.?5 years h. 1.42 years d. 0.21 years The accounting rate of return on the original investment is closest to: a. 3.55% c. 21.05% h. \"3.00% d. 33.55% The net present value on this investment is closest to: a. P3Dl} c. 1358.300 h. PT6J324 d. P 1?,550 The internal rate of return on the investment is closest to; a. 13% c. 14% h. 15% d. 12% Given a project's data for Lugaw D' Naka'w Company that uses straight-line method for depreciation; Initial investment P l Estimated life 4 years Cost of capital after taxes 15% Tax rate 40% The present value factors ot'P 1 at 15% are shown as follows; year 1, (1.371]; year 2, (1156; year 3, [3.658; year 4. I157? (Total 2.356]. Had Lugaw D' Nakaw Company used sum-oftheyears digit method in lieu of straightline method. net present value would have increased (decreased) by how much? a. P 20,493 :2. P 1.934 b. (P 20,493) d. {P 1,934}
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