1 A company plans to buy a new asset costing P 650,000 This will increase the cash inflow by P150, 000 yearly The estimated useful life of the new asset is 10 years, no scrap value The company is expecting a 15 rate of return a Compute for the net present value of the project b Should the new asset be purchased 2 ABC Company purchased a new equipment costing P 350,000 Costs to transport and install the new asset amounted to P 50,000 The new equipment, with an estimated useful life of 8 years will contribute an annual net cash inflow of P 60,000 a How much is the net initial investment b Compute for the payback period

Question

1  A company plans to buy a new asset costing P 650,000  This will increase the cash inflow by P150, 000 yearly  The estimated useful life of the new asset is 10 years, no scrap value  The company is expecting a 15  rate of return  a  Compute for the net present value of the project    b  Should the new asset be purchased  2  ABC Company purchased a new equipment costing P 350,000  Costs to transport and install the new asset amounted to P 50,000  The new equipment, with an estimated useful life of 8 years will contribute an annual net cash inflow of P 60,000  a  How much is the net initial investment  b Compute for the payback period

Accepted Answer

The Answer is in the image, click to view ...

Question

1. A company plans to buy a new asset costing P 650,000. This will increase the cash inflow by P150, 000 yearly. The estimated useful

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question