Question 18 Hamilton Company invested in a two-year project having an internal rate of return of 12%. The project is expected to produce cash flow from operations, net of income taxes, of P60,000 in the first year and P70,000 in the second year. The present value of 1 at 12% for year one is 0.893 and for year two is 0.797. How much will be the investment for the project ? P109,370 P103,610 P116,090 P122,510

Question 18 Hamilton Company invested in a two-year project having an internal rate of return of 12%. The project is expected to produce cash flow from operations, net of income taxes, of P60,000 in the first year and P70,000 in the second year. The present value of 1 at 12% for year one is 0.893 and for year two is 0.797. How much will be the investment for the project ? P109,370 P103,610 P116,090 P122,510

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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