. Net present value, uneven even cash inflows. An equipment costing P600,000, with a residual value of P30,000 at its usefial life of five years, is expected to bring . x f 2 * following net cash inflows: aS . First year P 350,000 Second year ~ 250,000 Third year 150,000 Fourth year 100,000 Fifth year $0,000 The company uses a 12% discouat rate. Required: Compute the following in relation to the proposed investment: 1. Net present value. 2. Profitability index. 3. Net present value index. |. Net present value. Free Style Corporation is considering the following investment alternatives: Net cash flows after tax Project 1 Project 2 Project 3 Year 0 P (5,000,000) P (8,000,900) _ P (1,400,000) Year 1 2,400,000 5,500,000 200,000 Year2 2,200,000 2,600,000 600,000 1/800,000 700,000 1,000,000 1,100,000 200,000 800,000 200,000 200,000 80,000 Year 3 Year 4 Salvage value ‘The company uses & 14% discount nate and has P13,S00,000 available money for investment. Required: Using the profitability index model, determine which project should the company invest ils money.Discounted payback period, even and uneven casii inflows. Nayatin Corpora- tion is considering to invest in’the following project opportunities: Project X Project Y Cost of investment P5,000,000 P5,000,000 Net cash savings, after tax: Year | 2,000,000 3,500,000 Year 2 2,000,000 2,500,000 Year 3 .. 2,000,000 1,500,000 Year 4 2,000,000 500,000 Required: Tisguuaiee payback period for each proposed project using a discount rate of 14%.