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49. The net cash flow for year 4 is a. P35,850 b. P35,950 c. P30,150 d. P36,250

49. The net cash flow for year 4 is a. P35,850 b. P35,950 c. P30,150 d. P36,250

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Questions 48 through 55 are based on the following information. The Burgos Corporation is considering investing in a project. It requires an immediate cash outlay of P100,000. It has a life of four years and will be depreciated on a straight-line basis (no salvage value). The firm's tax rate is 25% and requires a return of 10%. Income before depreciation is projected to be: YEAR 1 3 P30,000 P40,000 Income before depreciation The present value factors for P1 at 10% is Year Present Value Factor 1 0.909 2 P30,000 2 0.826 3 0.751 4 P40,000 4 0.683
Transcribed Image Text:Questions 48 through 55 are based on the following information. The Burgos Corporation is considering investing in a project. It requires an immediate cash outlay of P100,000. It has a life of four years and will be depreciated on a straight-line basis (no salvage value). The firm's tax rate is 25% and requires a return of 10%. Income before depreciation is projected to be: YEAR 1 3 P30,000 P40,000 Income before depreciation The present value factors for P1 at 10% is Year Present Value Factor 1 0.909 2 P30,000 2 0.826 3 0.751 4 P40,000 4 0.683
49. The net cash flow for year 4 is a. P35,850 b. P35,950 50. The payback period for the project is c. P30,150 d. P36,250 13
Transcribed Image Text:49. The net cash flow for year 4 is a. P35,850 b. P35,950 50. The payback period for the project is c. P30,150 d. P36,250 13
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