Bills Corporation is contemplating on a project. It has an initial investment of Php5 Billion and will generate cash flows of Php 7 Billion 5 years from now. a) How much is the present value of the project if the cost of capital is 10.50%? Compute for present value and net present value

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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Bills Corporation is contemplating on
a project. It has an initial investment
of Php5 Billion and will generate
cash flows of Php 7 Billion 5 years
from now. a) How much is the
present value of the project if the
cost of capital is 10.50%?
Compute for present value and net
present value
Transcribed Image Text:Bills Corporation is contemplating on a project. It has an initial investment of Php5 Billion and will generate cash flows of Php 7 Billion 5 years from now. a) How much is the present value of the project if the cost of capital is 10.50%? Compute for present value and net present value
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