A company has minimum required rate of return of 10% and is considering investing in a project that requires an investment of P70,000 and is expected to generate cash inflows of P30,000 at the end of each year for 3 years. The present value of future cash inflows for this project is Correct answer: b. P74,610

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Show solution and formula

A company has minimum required rate of return of 10% and is
considering investing in a project that requires an investment of
P70,000 and is expected to generate cash inflows of P30,000 at the
end of each year for 3 years. The present value of future cash
inflows for this project is
Correct answer:
b. P74,610
a. P70,000
, Not Selected
d. P4,610
Not Selected
c. P82,070
Transcribed Image Text:A company has minimum required rate of return of 10% and is considering investing in a project that requires an investment of P70,000 and is expected to generate cash inflows of P30,000 at the end of each year for 3 years. The present value of future cash inflows for this project is Correct answer: b. P74,610 a. P70,000 , Not Selected d. P4,610 Not Selected c. P82,070
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education