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Calculate discounted payback period of Project A and B Calculate net present value of A and B Which is more acceptable?

Calculate discounted payback period of Project A and B Calculate net present value of A and B Which is more acceptable?

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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Finva Passers, Inc., is considering two mutually exclusive projects, each with an initial investment of Php 150,000. The company's board of directors has set a maximum 4-year payback requirement and has set its cost of capital at 9%. The cash inflows associated with the two projects are shown in the following table. Cash inflows Project Project Year A Php Php 1 45,000 75,000 2 45,000 60,000 3 45,000 30,000 4 45,000 30,000 5 45,000 30,00| 6 45,000 30,000
Transcribed Image Text:Finva Passers, Inc., is considering two mutually exclusive projects, each with an initial investment of Php 150,000. The company's board of directors has set a maximum 4-year payback requirement and has set its cost of capital at 9%. The cash inflows associated with the two projects are shown in the following table. Cash inflows Project Project Year A Php Php 1 45,000 75,000 2 45,000 60,000 3 45,000 30,000 4 45,000 30,000 5 45,000 30,00| 6 45,000 30,000
1:42 ( Notes Calculate discounted payback period of Project A and B Calculate net present value of A and B Which is more acceptable?
Transcribed Image Text:1:42 ( Notes Calculate discounted payback period of Project A and B Calculate net present value of A and B Which is more acceptable?
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