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ATLAS corporation is planning to undertake a project that will give them an annual net income of P100,00.00. The project will last for 10 years
ATLAS corporation is planning to undertake a project that will give them an annual net income of P100,00.00.
The project will last for 10 years and will require the use of the following resources.
Machine with useful life of 20 years . P 200,000.00
Working capital 400,000.00
Determine the feasibility of the project using the following methods of evaluating investment proposal.
1. Annual cash return
2. Accounting rate of return
3. Based on the foregoing computations, the acceptability rate of the project is?
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