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Exercise 2 Masikap has an investment opportunity costing P180,000 that is expected to yield the following cash flows over the next five years: Year One Year Two P 30,000 P 60,000 Year Three P 90,000 P 60,000 P 30,000 Year Four Year Five Required: a. Find the payback period of the investment. b. Find the accounting rate of return of based on original investment.

Exercise 2 Masikap has an investment opportunity costing P180,000 that is expected to yield the following cash flows over the next five years: Year One Year Two P 30,000 P 60,000 Year Three P 90,000 P 60,000 P 30,000 Year Four Year Five Required: a. Find the payback period of the investment. b. Find the accounting rate of return of based on original investment.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Exercise 2

Exercise 2 Masikap has an investment opportunity costing P180,000 that is expected to yield the following cash flows over the next five years: P 30,000 P 60,000 Year One Year Two Year Three P 90,000 Year Four Year Five P 60,000 P 30,000 Required: a. Find the payback period of the investment. b. Find the accounting rate of return of based on original investment.
Transcribed Image Text:Exercise 2 Masikap has an investment opportunity costing P180,000 that is expected to yield the following cash flows over the next five years: P 30,000 P 60,000 Year One Year Two Year Three P 90,000 Year Four Year Five P 60,000 P 30,000 Required: a. Find the payback period of the investment. b. Find the accounting rate of return of based on original investment.
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