3 Consider a project which involves the investment of P100,000 now and P100,000 at the end of one year. Revenues of P150,000 will be generated at the end of years 1 and 2. What is the present value of this project if the effective annual interest rate is 10% ? P65,421.50 P67,421.5 P68,421.50 P69,421.50 a d.
3 Consider a project which involves the investment of P100,000 now and P100,000 at the end of one year. Revenues of P150,000 will be generated at the end of years 1 and 2. What is the present value of this project if the effective annual interest rate is 10% ? P65,421.50 P67,421.5 P68,421.50 P69,421.50 a d.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Consider a project which involves the investment of P100,000 now and
P100,000 at the end of one year. Revenues of P150,000 will be generated at
the end of years 1 and 2. What is the present value of this project if the
3
effective annual interest rate is 10% ?
a
P65,421.50
P68,421.50
b
P67,421.5
P69,421.50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5baad96d-5da8-4729-845a-d8f61f6a8350%2F8965b25b-5c92-4384-9da2-16bb09133b23%2Fccmxmuu_processed.png&w=3840&q=75)
Transcribed Image Text:Consider a project which involves the investment of P100,000 now and
P100,000 at the end of one year. Revenues of P150,000 will be generated at
the end of years 1 and 2. What is the present value of this project if the
3
effective annual interest rate is 10% ?
a
P65,421.50
P68,421.50
b
P67,421.5
P69,421.50
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