20 Points You are going to invest in a 5-year project and you compute the average for each alternative: Compute the NPV, PI and Discounted payback period of each alternative. Which among the three alternatives are going to choose and why? 1. The PV of cash inflows is P42,089,860 and PV of cash outflows of P35,298,846 in 5% discount rate. 2 The PV of cash inflows is P15,993,571 and PV of cash outflows of P13,993,463 in 15% discount rate. 3. The PV of cash inflows is P18,807,090 and PV cash outflows of P16,805,996 in 25% discount rate. Answer with text and/or attachments:

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6PB: There are two projects under consideration by the Rainbow factory. Each of the projects will require...
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20 Points
You are going to invest in a 5-year project and you compute the average for each alternative: Compute the NPV, PI and Discounted payback period of each alternative. Which among the three alternatives are going to choose and
why?
1. The PV of cash inflows is P42,089,860 and PV of cash outflows of P35,298,846 in 5% discount rate.
2 The PV of cash inflows is P15,993,571 and PV of cash outflows of P13,993,463 in 15% discount rate.
3. The PV of cash inflows is P18,807,090 and PV cash outflows of P16,805,996 in 25% discount rate.
Answer with text and/or attachments:
Transcribed Image Text:20 Points You are going to invest in a 5-year project and you compute the average for each alternative: Compute the NPV, PI and Discounted payback period of each alternative. Which among the three alternatives are going to choose and why? 1. The PV of cash inflows is P42,089,860 and PV of cash outflows of P35,298,846 in 5% discount rate. 2 The PV of cash inflows is P15,993,571 and PV of cash outflows of P13,993,463 in 15% discount rate. 3. The PV of cash inflows is P18,807,090 and PV cash outflows of P16,805,996 in 25% discount rate. Answer with text and/or attachments:
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ISBN:
9781947172609
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