Question
Sulu Inc. has provided the following data to be used in evaluating a proposed investment project (assume that straight line method of depreciation is used,
Sulu Inc. has provided the following data to be used in evaluating a proposed investment project (assume that straight line method of depreciation is used, and the same method is used for tax purposes):
Initial investmentP880,000
Annual cash receiptsP660,000
Annual cash expensesP330,000
Useful life8 years
Salvage valueP80,000
Tax rate30%
Discount rate12%
how to Compute for the net present value?
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
