answer

answer exercise 1

answer immediately pls

answer exercise 1 immediately

Exercise 1. A project proposal requiring P840,000 initial investment will result to annual cash return as follow: Year 1 P 55,000 Year 2 150,200 Required: Year 3 275,000 a. If the current cost of funds is 8% and the Year 4 350,700 decision criteria are the net present value Year 5 245,000 and discounted payback, should the project Year 6 120,400 be accepted ? b. The project's payback period and Internal Rate of Return ? Exercise 2. The following project proposals were made available for your analysis : Chimes Light Expected sales volume 100,000 120,000 Unit Selling Price P 25 P 22.5 Unit Cost of Sales P 15 P 12.5 Out-of-pocket expenses P 475,000 P 775,000 Economic life 4 years 5 years Each project requires P1,250,000 investment of which P425,000 represents depreciable tangible assets. Salvage value of tangible assets is 5% of the acquisition cost. The corporation is subject to 30% income tax and have a 10% weighted cost of capital Required: a. Annual cash returns, the payback period, and the internal rate of return. b. Which project is superior? Should it be implemented