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What are the expected annual cost savings of the project

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Reference no: EM132632636

The Sandawa Corporation has recently evaluated a proposal to invest in cost-reducing production technology. According to the evaluation, the project would require an initial investment of P17,166 and would provide equal annual cost savings for five years. Based on a 10 percent discount rate, the project generates a net present value of P1,788. The project is not expected to have any salvage value at the end of its five-year life.

Question 1. Refer to Sandawa Corporation. What are the expected annual cost savings of the project?

Question 2. Refer to Sandawa Corporation. What is the project's expected internal rate of return?

Reference no: EM132632636

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