You are tasked to evaluate a certain project that will cost P9,500 and will earn cash inflows,
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2. A company has a policy setting its minimum desired rate of return at 12%. If a project with an initial capital of P10,500 and expected annual cash flow of P2,800 for five period. As finance manager, will you advise the firm to pursue with this project? Support your answer with the exact IRR.
3. A firm entered into an agreement with a foreign investor to receive an endowment which provides you with P500,000 per year, forever. How much should that foreign entity set aside if the interest rate is 8% for all future time period.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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