4. Thom J.A.M. Company has P80,000 to invest and is considering two different projects, Vlogging and Blogging. Data pertaining to the two projects are given as follows: Cost of equipment needed now Working capital investment needed now Annual cash operating inflows Salvage value of equipment in 5 years Blogging P80,000 23,000 6,000 Vlogging P80,000 18,000 Additional information: Both projects will have a useful life of 5 years; at the end of 5 years, the working capital investment will be eleased for use elsewhere. J.A.M.'s required rate of return is 12%. What is the net present value of project Blogging? Solution:
4. Thom J.A.M. Company has P80,000 to invest and is considering two different projects, Vlogging and Blogging. Data pertaining to the two projects are given as follows: Cost of equipment needed now Working capital investment needed now Annual cash operating inflows Salvage value of equipment in 5 years Blogging P80,000 23,000 6,000 Vlogging P80,000 18,000 Additional information: Both projects will have a useful life of 5 years; at the end of 5 years, the working capital investment will be eleased for use elsewhere. J.A.M.'s required rate of return is 12%. What is the net present value of project Blogging? Solution:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
PLEASE DO THE SOLUTIONS MANUALLY. NOT THRU EXCEL. OTHERWISE DOWNVOTE.
PLEASE SKIP THIS IF YOU ALREADY DID THIS OTHERWISE, DOWNVOTE.
I WILL UPVOTE IF YOU FOLLOW MY INSTRUCTIONS
![4. Thom J.A.M. Company has P80,000 to invest and is considering two different projects, Vlogging and
Blogging. Data pertaining to the two projects are given as follows:
Cost of equipment needed now
Working capital investment needed now
Annual cash operating inflows
Salvage value of equipment in 5 years
Blogging
P80,000
23,000
6,000
Vlogging
P80,000
18,000
Additional information:
Both projects will have a useful life of 5 years; at the end of 5 years, the working capital investment will be
released for use elsewhere. J.A.M.'s required rate of return is 12%.
What is the net present value of project Blogging?
Solution:
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F76043b90-1f33-46dd-a5c8-708bcf994f14%2Fc156eeb6-e7a1-4e11-9f6b-cbb42adbc789%2Fej6w25q_processed.png&w=3840&q=75)
Transcribed Image Text:4. Thom J.A.M. Company has P80,000 to invest and is considering two different projects, Vlogging and
Blogging. Data pertaining to the two projects are given as follows:
Cost of equipment needed now
Working capital investment needed now
Annual cash operating inflows
Salvage value of equipment in 5 years
Blogging
P80,000
23,000
6,000
Vlogging
P80,000
18,000
Additional information:
Both projects will have a useful life of 5 years; at the end of 5 years, the working capital investment will be
released for use elsewhere. J.A.M.'s required rate of return is 12%.
What is the net present value of project Blogging?
Solution:
4
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education