Question
A) Salamah is evaluating a capital budgeting project that generates cash inflows equal to Php15 million per year for the next five years. If the
A) "Salamah is evaluating a capital budgeting project that generates cash inflows equal to Php15 million per year for the next five years. If the project's traditional payback period is 4.5 years, what is its initial cost?"
B) " Harawi Inc. identifies an investment opportunity that will yield end of year cash flows of 50,000 in both Year 1 and Year 2, 45,000 in both Year 3 and Year 4, and 40,000 in Year 5. The investment will cost the firm 100,000 today, and the firm's required rate of return is 7 percent. What is the IRR for this investment?"
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