2. A certain productivity project can be undertaken by two alternatives. Information about these alternatives are given
Posted: Fri Jul 01, 2022 7:52 am
2. A certain productivity project can be undertaken by two alternatives. Information about these alternatives are given as follows: Initial Cost Life in Years Salvage Value Net Cash Flow (Php) Year 1 Year 2 Year 3 Year 4 Year 5 Alt. Euriphides Php 150,000 3 Php 15,000 Php 60,000 Php 70,000 Php 80,000 Alt. Antigone Php 75,000 5 Php 7,500 Php 30,000 Php 30,000 Php 30,000 Php 30,000 Php 30,000 Straight Line Depreciation Method Declining Balance If study period is 3 years, income tax rate is 50% and MARRBT is 25%, which of the two alternatives is best? Use the IRR method.