The corporation made a net investment of P500,000 in a vending machine. Over the five years of its useful life, the machine is expected to have net cashflows of P250,000, P200,000, P80,000, P75,000, and P50,000. Assuming the incremental cost of capital was 9%. Requirement: 1. Internal rate of return of the investment
The corporation made a net investment of P500,000 in a vending machine. Over the five years of its useful life, the machine is expected to have net cashflows of P250,000, P200,000, P80,000, P75,000, and P50,000. Assuming the incremental cost of capital was 9%. Requirement: 1. Internal rate of return of the investment
Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter2: Equations, Inequalities, And Problem Solving
Section2.S: Summary
Problem 8S: What interest rate would you need to get to double an investment of 200 in eight years?
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The corporation made a net investment of P500,000 in a vending machine. Over the five years of its useful life, the machine is expected to have net cashflows of P250,000, P200,000, P80,000, P75,000, and P50,000. Assuming the incremental cost of capital was 9%.
Requirement:
1. Internal rate of return of the investment
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