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1. COMPUTE for the transaction price under the following situation: a. ABC company is trying to determine how much to sell their new Product WTH.

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1. COMPUTE for the transaction price under the following situation: a. ABC company is trying to determine how much to sell their new Product WTH. The company expects that the buyers of Product WTH will have steady cash inflow of P150,000 for the next 5 years with expected cash out flows of P15,000; P20,000; P25,000; P30,000; and P35,000 for years 1 to 5 respectively. The post-tax discount rate is 10.5% with a corporate tax rate of 30%. (use 2 decimal places for your PV factors. For example: 15.32. Furthermore, your answers should be rounded off to the nearest whole number.) CASH INFLOW CASH OUTFLOW YEAR 1 2 3 4 5 NET CASH FLOW (1) (2) (3) (4) (5) NPV (6) (7) (8) (9) (10) 11. Transaction price

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