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A group of engineers formed a corporation and the opportunity to invest P8,000,000. Their plan is to expand a domestic operation. It is estimated that this investment would return a net year end cash flow of P2,000,000 each year for 10 years and at the end of that time, the physical assets, which would no longer be needed, could be sold at P5,000,000. Compute the rate of return. 24.51% 22.68% 21.33% 23.81% 25.11% 20.95%

A group of engineers formed a corporation and the opportunity to invest P8,000,000. Their plan is to expand a domestic operation. It is estimated that this investment would return a net year end cash flow of P2,000,000 each year for 10 years and at the end of that time, the physical assets, which would no longer be needed, could be sold at P5,000,000. Compute the rate of return. 24.51% 22.68% 21.33% 23.81% 25.11% 20.95%

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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A group of engineers formed a corporation and the opportunity to invest P8,000,000. Their plan is to expand a domestic operation. It is estimated that this investment would return a net year end cash flow of P2,000,000 each year for 10 years and at the end of that time, the physical assets, which would no longer be needed, could be sold at P5,000,000. Compute the rate of return. 24.51% 22.68% 21.33% 23.81% 25.11% 20.95%
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