Stan Corporation bought a piece of machinery. Selected data is presented below: Useful life, 6 years Yearly net cash inflow, P45,000 Salvage value,- 0 - Internal rate of return, 18% Cost of capital, 14% The initial cost of the machinery was (round present value factor to four decimal places)

Stan Corporation bought a piece of machinery. Selected data is presented below: Useful life, 6 years Yearly net cash inflow, P45,000 Salvage value,- 0 - Internal rate of return, 18% Cost of capital, 14% The initial cost of the machinery was (round present value factor to four decimal places)

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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Question

Stan Corporation bought a piece of machinery. Selected data is presented below:

Useful life, 6 years

Yearly net cash inflow, P45,000

Salvage value,- 0 -

Internal rate of return, 18%

Cost of capital, 14%

The initial cost of the machinery was (round present value factor to four decimal places)

Definition Definition Transfer of funds into a company by any third party, which may happen due to any operational, investing, and financing activities. The cash inflow includes payments made by customers or investments made by the investors into the company by purchasing its equity.

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