Phantom Troupe, Inc. plans to put up a small game lounge. The overall cost of the project is P175,000 which is expected to exist in seven (7) years. Periods Present value factors

12% 14% 16% 18% 20% 22% 24%

7 4.564 4.288 4.039 3.812 3.605 3.416 3.242

If the acceptable discounted payback period is four (4) years, will it be accepted? Why or why not?

What is the net present value?

If net present value was used to evaluate the project, will it be accepted? Why or why not?

What is the profitability index?

What is the internal rate of return?