Solution-Compute the net cash inflows using liquidity

Compute the net cash inflows using liquidity

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Reference no: EM133076374

Question - Topic - Capital Budgeting - The RHIANE Corporation is planning to add a new product line to its present business. The new product will require a new equipment costing P1,200,000 with a five-year life with no salvage value. The following estimates are made available: Annual Sales P6,600,000; Materials P2,200,000; Labor P900,000; FOH (excluding depreciation) P500,000; Selling and Administrative Expenses P1,500,000; and Income tax of 40%. Compute the net cash inflows using liquidity and yield preference theories.

Reference no: EM133076374

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Compute the net cash inflows using liquidity

Reference no: EM133076374

Reference no: EM133076374

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