Mr. Joseph Ramos, owner of a GYM is planning to buy an equipment worth P150,000 in his business Ramos Merchandizing. In the first year of operation, the project is expected to generate an income of P30, 000 on the second year, P29,000, on the third year P35,000, on the fourth year, P40,000 and on the fifth year P45,000. Compute the Payback Period, Net Present Value, Internal Rate of Return and submit your answer here. Hurdle rate set in this project is 14%.

Mr. Joseph Ramos, owner of a GYM is planning to buy an equipment worth P150,000 in his business Ramos Merchandizing. In the first year of operation, the project is expected to generate an income of P30, 000 on the second year, P29,000, on the third year P35,000, on the fourth year, P40,000 and on the fifth year P45,000. Compute the Payback Period, Net Present Value, Internal Rate of Return and submit your answer here. Hurdle rate set in this project is 14%.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 10PB: Bouvier Restaurant is considering an investment in a grill that costs $140,000, and will produce...

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