61. The following information on the utilization of a new computer programs was collected. Number of Total time to perform all task Average time to perform each task tasks 20 minutes 20 minutes 36 minutes 18 minutes 3 64.8 minutes 16.2 minutes If this learning effect continues, what is the average time to perform each of the first eight () tasks? O A. 13.66 minutes O B. 14.58 minutes O C. 15.50 minutes O D. 16.20 minutes62. In computing the initial investment for decision-makingr taxes would * be relevant for all of the following. EXC E PT: 0 A. Avoidable repairs of old asset O B. Profit on sale of old asset replaced by a new one 0 (3. Increase in working capital required to support new capital investment 0 D. Loss on write-off of other assets disposed because of new capital investment 63. For a certain project, the return that investors demand for investing in * a firm is known as: O A. DCF rate of return 0 B. Net present value 0 C. Payback O D. Cost of capital 64. An advantage of using the payback method is that the method is: * O A. Simple to compute O B. Not based on cash DW data 0 C. Precise in estimates of probability 0 D. lnsensitiye to the life of the project 65. The payback method assumes that all cash inflows are reinvested to yield a return equal to O A. The discount rate 0 B. The hurdle rate 0 C. The internal rate of return 0 D. zero 66. Which capital budgeting method assumes that the funds are reinvested at the company's cost of capital? A. Payback B. Accounting rate of return O C. Net present value D. Time adjusted rate of return 67. Iruma Corporation has estimated that a proposed project's 10-year annual net cash inflow will be P220,093 with an additional terminal benefit of P50,000 at the end of the project. Assuming that these cash inflows satisfy Iruma's acceptable sophisticated rate of return of 8 percent, what is the net investment? O a. P2,751,159 b. P1,476,840 O C. P1,500,000 O d. Cannot be determined68. Asahi Company is considering replacing a truck with a book value of P500,000 and remaining useful life of 5 years. The existing truck has a current market value of P350,000. The replacement truck would cost P750,000, have a 5-year life, and save P90,000 per year in cash operating costs. Replacing the existing truck will also result to savings in repair cost of P100,000. If the replacement truck would require additional working capital amounting to P125,000 and be depreciated using the straight-line method, what would be the relevant cost of acquiring the replacement truck assuming a tax rate of 40%? A. P405,000 O B. P750,000 O C. P365,000 O D. P355,0006?. Erina Incorporated is planning to purchase a new printing press costing P150.000 with freight and installation costs amounting to P3.500. The old unit is to he traded-in will be given a trade-in allowance of P15,00 0. Other assets that are to he retired as a result of the acquisition of the new printing press can be salvaged and sold for P'l0.000. The loss on retirement of these other assets is P2.000 which will reduce income taxes of P800. If the new printing press is not purchased. repair of the old unit will have to be made at an estimated cost of PB.000. This cost can be avoided by purchasing the new printing press. Additional gross working capital of P12.000 will he needed to support operation planned with the new equipment. The cost of investment for decision analysis is. O a. P123200 0 a. P131.400 O c.P1s4.soo O o. P131300 70. Aldini Air, Inc. just paid a dividend of P3.29. The company's dividend is expected to grow at a steady, constant rate of 5% well into the future. If the required rate of return for Aldini is 12%, what is the best estimate for the current price of Aldini's common stock O A. 28.79 B. 65.80 O C. 47.00 O D. 49.35