Super Company is planning to invest P 80,000 in a 3-year project. The internal rate of return (IRR) of this investment is 10%. The PV of P 1 at 10% for 1 year is .909, for two years is .826 and for 3 years is .751. The net cash flows net of income taxes will be P 30 000 for the first year and net cash flows net of income taxes will be P 30,000 for the first year, and P 36,000 for the second year. How much is the net cash flow net of income taxes for the 3rd year? P 17,268 P 22,000 P 22,994 P 30,618
Super Company is planning to invest P 80,000 in a 3-year project. The internal rate of return (IRR) of this investment is 10%. The PV of P 1 at 10% for 1 year is .909, for two years is .826 and for 3 years is .751. The net cash flows net of income taxes will be P 30 000 for the first year and net cash flows net of income taxes will be P 30,000 for the first year, and P 36,000 for the second year. How much is the net cash flow net of income taxes for the 3rd year? P 17,268 P 22,000 P 22,994 P 30,618
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 22E
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- Super Company is planning to invest P 80,000 in a 3-year project. The
internal rate of return (IRR) of this investment is 10%. The PV of P 1 at 10% for 1 year is .909, for two years is .826 and for 3 years is .751. The netcash flows net of income taxes will be P 30 000 for the first year and net cash flows net of income taxes will be P 30,000 for the first year, and P 36,000 for the second year.
How much is the net cash flow net of income taxes for the 3rd year?
P 17,268
P 22,000
P 22,994
P 30,618
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