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Number 60 to 62 please. Thank you! Mamacarmen Corporation is evaluating two investment opportunities. Data about the two projects are as follows: Prof at 1

Number 60 to 62 please. Thank you!

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Mamacarmen Corporation is evaluating two investment opportunities. Data about the two projects are as follows: Prof at 1 Prof 612 Cost of investment P48,000 P1,600,000 Cash inows, end of Year 1 64,000 1,120,000 2 64,000 800,000 The two investment projects are considered to be equally risky. 60. If the cost of capital is zero, what is the net present value of each project? Project 1 Project 2 a. P 48,000 P1,600,000 b. 128,000 1,920,000 c. 80,000 320,000 d. 176,000 3,520,000 61. If the cost of capital is 10%, each project's protability index is (At 10%, the present values of P1 for years 1 and 2, respectively are 0.909 and 0.826.) The present value of an annuity of P1 for 2 years at 10% is 1.736.) Pr l'ectl Pr [E'Cl'Z a. 2.31 1.05 b. 2.67 1.20 c. 0.43 0.95 d. 1.20 2.67 62. The Theory of Constraints (TOC) is based on the idea that every organization has at least one constraint that prevents it from obtaining more of its objective. Under TOC, a. efforts that are designed to improve the rate of output of a workstation should generally be focused on the constraint. b. a company that wants to improve its operations should focus its improvement efforts on the workstation with the highest productive capacity. c. improvement efforts should be focused on non-constraints. d. no company has constraints

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