You found that opening your own cake shop is a worthwhile project. After scouting around you found out that you will need an initial capital of P50,000.00. Your estimate of the net cash flow for the next four years are as follows: Year 1: P20,000.00 Year 2: 25,000.00 Year 3: 25,000.00 Year 4: 30,000.00 Will pursue opening your cake shop?

You found that opening your own cake shop is a worthwhile project. After scouting around you found out that you will need an initial capital of P50,000.00. Your estimate of the net cash flow for the next four years are as follows: Year 1: P20,000.00 Year 2: 25,000.00 Year 3: 25,000.00 Year 4: 30,000.00 Will pursue opening your cake shop?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...

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