Solution-What profitability index of the project is

What profitability index of the project is

Assignment Help Managerial Accounting

Reference no: EM132835527

BONALOS Company is considering the purchase of a machine. Data are as follows:

Cost P100,000

Useful life 10 years

Annual straight-line depreciation P10,000

Expected annual savings in cash operating costs P18,000

Bonalos cutoff rate is 12%. Tax rate is 30%.

PV of an ordinary annuity of 1 at 12% for 10 periods is 5.65

Problem 1: The Profitability Index of the project is

Problem 2: The payback period is

Reference no: EM132835527

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What profitability index of the project is

Reference no: EM132835527

Reference no: EM132835527

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