Name: Date: Score: Program-Year-Section: Professor: Exercise II Set B Teresita Corporation is taking into consideration on expanding its operation. The expansion needs new computerized equipments which last for five years. A cash outflow of P1,500,000.00 is necessary for the procurement of new equipments. The prevailing bank's interest rate for a 5 year term loan is 9% per annum. The projected cash inflows from the investment for the next five years are given below: Year Cash Flow 1 P750,000.00 2 600,000.00 3 450,000.00 4 300,000.00 150,000.00 Required: By applying the following evaluation techniques, is the new investment economically acceptable? 1. Payback period 2. Discounted Payback 3. Net Present Value (NPV) 4. Profitability Index (PI) 5. Internal Rate of Return (if financial calculator is available) 6. Modified Internal Rate of Return (if financial calculator is available)