Multiple choice: Assuming that SN North Company has the following net cash inflow: P60,000, P55,000, P50,000, and P45,000 for years 1, 2, 3, and 4, respectively. Assuming further that the company’s cost of capital is 25% for a net cost of investment of P120,000, how much is the present value of a salvage value which amounts to P45,000? • P18,400 • P36,900 • P23,000 • P25,700
Multiple choice: Assuming that SN North Company has the following net cash inflow: P60,000, P55,000, P50,000, and P45,000 for years 1, 2, 3, and 4, respectively. Assuming further that the company’s cost of capital is 25% for a net cost of investment of P120,000, how much is the present value of a salvage value which amounts to P45,000? • P18,400 • P36,900 • P23,000 • P25,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Multiple choice:
Assuming that SN North Company has the following net
• P18,400
• P36,900
• P23,000
• P25,700
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