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Answer the requirements PROBLEM 1 Nemo Corporation gathered the following data on two capital investment opportunities: Project 1 Project 2 Cost of investment P195,200 P

Answer the requirements

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PROBLEM 1 Nemo Corporation gathered the following data on two capital investment opportunities: Project 1 Project 2 Cost of investment P195,200 P 150,000 Cost of capital 10% 10% Expected useful life 3 years 3 years Net cash inflows P100,000 P100,000* *This amount is to decline by P25,000 annually thereafter. REQUIRED: Fill in the blanks (Round-off the present value factors to three decimal places) Project 1 Project 2 Payback period (1) (2) Payback reciprocal (3) (4) NPV: (5) (6) Profitability index (7) (8)

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