Your barkada is planning to set up a food stall in your village. You plan to sell items such as fish balls, squid balls, instant noodles, soft drinks, etc. Based on your research you will be needing an initial capital of P50,000. Your estimate of net cash flow for the next four years ( your investment horizon) are as follows: Year 1: P20,000 Year 2: P25,000 Year 3: P25,000 Year 4: P30,000 Compute the Net Present Value of the project. The OPPORTUNITY COST OF CAPITAL IS 9%. Will you pursue this business?
Your barkada is planning to set up a food stall in your village. You plan to sell items such as fish balls, squid balls, instant noodles, soft drinks, etc. Based on your research you will be needing an initial capital of P50,000. Your estimate of net cash flow for the next four years ( your investment horizon) are as follows: Year 1: P20,000 Year 2: P25,000 Year 3: P25,000 Year 4: P30,000 Compute the Net Present Value of the project. The OPPORTUNITY COST OF CAPITAL IS 9%. Will you pursue this business?
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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Your barkada is planning to set up a food stall in your village. You plan to sell items such as fish balls, squid balls, instant noodles, soft drinks, etc. Based on your research you will be needing an initial capital of P50,000. Your estimate of net cash flow for the next four years ( your investment horizon) are as follows:
Year 1: P20,000
Year 2: P25,000
Year 3: P25,000
Year 4: P30,000
Compute the Net Present Value of the project. The OPPORTUNITY COST OF CAPITAL IS 9%. Will you pursue this business?
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