Horn Corporation is considering investing in a four-year project. Cash inflows from the project are expected to be as follows: Year 1, P2,000; Year 2, P2,200; Year 3, P2,400; Year 4, P2,600. If using a discount rate of 8%, the project has a positive net present value of P500, what was the amount of the original investment? Horn Corporation is considering investing in a four-year project. Cash inflows from the project are expected to be as follows: Year 1, P2,000; Year 2, P2,200; Year 3, P2,400; Year 4, P2,600. If using a discount rate of 8%, the project has a positive net present value of P500, what was the amount of the original investment?

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To find the original investment we need to calculate the net present value of the pr... View the full answer