Question: Directions: Solve the problem below. Show your solution on a separate sheet of paper. ' Two project proposals have been presented to XYZ Corporation. Project

Directions: Solve the problem below. Show your
Directions: Solve the problem below. Show your solution on a separate sheet of paper. ' Two project proposals have been presented to XYZ Corporation. Project A requires an initial investment of Php 80,000.00 and the expected annual cash return is Php 30,000.00 for 4 years. Project B requires an initial investment of Php 60,000.00 and the expected annual cash return is Php 20,000.00 for 5 years. a. What is the payback period of each project? (4 points) b. Compute for the net present value of each project if the cost of capital is 10%. (4 points) c. Which project should XYZ Corporation accept? Why? (2 points)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!