R Co. is involved in the evaluation of a new computer-integrated manufacturing system. The system has a projected initial cost of P1,000,000. It has an expected life of six years, with no salvage value, and is expected to generate annual cost savings of P250,000. Based on R Co.'s analysis, the project has a net present value of P57,625. What discount rate did the company use to compute the net present value?

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To determine the discount rate used to compute the net present value NPV of the project we can use t... View the full answer