Exercise 2 Exercise 2Masikap has an investment opportunity costing P180,000 that is expected to yield the following cashflows over the next five years:P 30,000P 60,000Year OneYear TwoYear Three P 90,000Year FourYear FiveP 60,000P 30,000Required:a. Find the payback period of the investment.b. Find the accounting rate of return of based on original investment.

Payback period is the time taken by the investment to recover the cost of the investment. The…

Exercise 2 Masikap has an investment opportunity costing P180,000 that is expected to yield the following cash flows over the next five years: Year One Year Two P 30,000 P 60,000 Year Three P 90,000 P 60,000 P 30,000 Year Four Year Five Required: a. Find the payback period of the investment. b. Find the accounting rate of return of based on original investment.

Exercise 2 Masikap has an investment opportunity costing P180,000 that is expected to yield the following cash flows over the next five years: Year One Year Two P 30,000 P 60,000 Year Three P 90,000 P 60,000 P 30,000 Year Four Year Five Required: a. Find the payback period of the investment. b. Find the accounting rate of return of based on original investment.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...

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