Assume ABC wants to invest in a machine costing P 80,000 with a useful

1.	Assume ABC wants to invest in a machine costing P 80,000 with a useful life of six years and no salvage value. The machine will be depreciated using the straight-line method and is expected to produce annual cash inflow from operations, net of income taxes of P 22,000. The present value of an ordinary annuity of P1 for six periods at 10% is 4.355. The present value of P1 for six periods at 10% is 0.564. ABC wants a minimum rate of return of 10%, what is the net present value of this proposed investment? Is the propose investment acceptable? Why or why not?
Answer» ANSWER: hjjjjghjhffghvfy USED hikllll

Assume ABC wants to invest in a machine costing P 80,000 with a useful life of six years and no salvage value. The machine will be depreciated using the straight-line method and is expected to produce annual cash inflow from operations, net of income taxes of P 22,000. The present value of an ordinary annuity of P1 for six periods at 10% is 4.355. The present value of P1 for six periods at 10% is 0.564. ABC wants a minimum rate of return of 10%, what is the net present value of this proposed investment? Is the propose investment acceptable? Why or why not?

Answer»

hjjjjghjhffghvfy USED hikllll