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Compute for the net present value

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Reference no: EM132796464

Sulu Inc. has provided the following data to be used in evaluating a proposed investment project (assume that straight line method of depreciation is used, and the same method is used for tax purposes):

Initial investment P880,000
Annual cash receipts P660,000
Annual cash expenses P330,000
Useful life 8 years
Salvage value P80,000
Tax rate 30%
Discount rate 12%

Required:

Problem 1: Compute for the net present value.

Reference no: EM132796464

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