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Determine the annual cash return

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Reference no: EM133171021

Question - A project proposal submitted to you for evaluation follow:

Investment, including depreciable assets of P195,000 with economic life of six years) P240,000

Annual sales revenue 250,000

Variable cost of sales 43%

Annual cash operating costs 95,000

Income tax rate 30%

Required -

a. Determine the annual cash return, payback period, and internal rate of return.

b. If the corporate cost of capital is 10%, should the project be implemented?

Reference no: EM133171021

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