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Exercise 6-12 The Natividad Corporation has the following investment opportunities: The firm has a budget constraint of P600,000. The above proposals are not mutually exclusive.

image text in transcribedimage text in transcribed Exercise 6-12 The Natividad Corporation has the following investment opportunities: The firm has a budget constraint of P600,000. The above proposals are not mutually exclusive. REQUIRED: 1. Discuss what proposals should be accepted. Exercise 6-13 Adelina Corporation used to accept investment opportunities that yielded discounted returns of 12%. With an increasing cost of capital, the company is now expecting an 18% discounted rate of return. Two competing alternatives are now waiting for your evaluation so you can advised the corporation. Pertinent data are shown below: Depreciation is to be deducted by the SYD formula. Assume that the entire net investment is subject to depreciation with no estimated scrap value for both. Use a tax rate of 30%. REQUIRED: 1. For both alternatives, determine: (Round answers for a,b,& d to 3 decimals) a. Payback periods c. Net present values b. Discounted rates of return d. Profitability indices Exercise 6-10 The following investment alternatives have been presented: The minimum desired rate of return is 20% for both alternatives. REQUIRED: 1. Determine the net present value of both alternatives

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