Kern Co, is planning to invest in a two-year project that is expected to yield cash flows from operations, net of income taxes, of P50,000 in the first year and P80,000 in the second year. Kern requires an internal rate of return of 15%. The maximum that Kern should invest immediately is (Round off your factors into three decimal places) P103.980 P81.670 P130.000 P163,340
Kern Co, is planning to invest in a two-year project that is expected to yield cash flows from operations, net of income taxes, of P50,000 in the first year and P80,000 in the second year. Kern requires an internal rate of return of 15%. The maximum that Kern should invest immediately is (Round off your factors into three decimal places) P103.980 P81.670 P130.000 P163,340
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
Problem 1PS
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Kern Co, is planning to invest in a two-year project that is
expected to yield cash flows from operations, net of income taxes,
of P50,000 in the first year and P80,000 in the second year. Kern
requires an internal rate of return of 15%. The maximum that Kern
should invest immediately is (Round off your factors into three
decimal places)
P103.980
P81.670
P130.000
P163,340
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