The management of NUBD Co. is considering the purchase of a new machien costing P400,000 with a salvage value of P50,000. The company's desired rate of return is 10%. In addition to the foregoing...


What is the average rate of return for this investment?


The management of NUBD Co. is considering the purchase of a new machien<br>costing P400,000 with a salvage value of P50,000. The company's desired rate of<br>return is 10%. In addition to the foregoing information, use the following data in<br>determining the acceptability in this situation:<br>Year<br>1<br>Income from operations<br>P100,000<br>40,000<br>20,000<br>10,000<br>10,000<br>Net cash flow<br>P180,000<br>120,000<br>100,000<br>90,000<br>90,000<br>4<br>5<br>

Extracted text: The management of NUBD Co. is considering the purchase of a new machien costing P400,000 with a salvage value of P50,000. The company's desired rate of return is 10%. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Year 1 Income from operations P100,000 40,000 20,000 10,000 10,000 Net cash flow P180,000 120,000 100,000 90,000 90,000 4 5

Jun 11, 2022
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