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Compute for the net present value

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Question - 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 - Compute for the net present value.

Reference no: EM132775009

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